How can you know it is the last dip? What are the specific signs that a coin is getting back up?
More specific, when can I know that Bitcoin reached its lowest low (for this timeframe) and it will continue its steady growth from there?
Sorry for the noob question, I'm looking for an entry point for a long-term Bitcoin investment. I feel that trying to dig into trading theory right now would be too much for what I need. I'm just looking to maximize my profits in this specific situation.
Any tip would be much appreciated. Thank you
There is simply no way to tell.
The "low" point is extremely hard to grasp. You have to understand the price is simply an agreement between two users to conduct a trade. The actual lowe point will only be done by 1 pair of traders - out of thousands in the market. So don't expect to be exactly that lucky buyer(nor the unlucky seller
).
I suggest that if you are looking to buy in long term, try to buy in every few days/week depending on how much you are willing to put in to bitcoin a set amount in fiat terms. That way, if price rises you've got yourself a good deal early on and if price drops then you can lower your average entry point.
Long term wise, entry points don't really matter either way, it'll just boost your profits further. Bitcoin will be extremely bullish in the long run. People said that people who bought btc when it was $1300 back in 2013 were stupid, but they would have more than doubled their wealth in 4 years only if they held.
