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Author Topic: What does it mean to buy on the Dip?  (Read 1586 times)
DavidinCA
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December 21, 2018, 12:26:01 AM
Merited by bones261 (1), mjglqw (1)
 #1

I'm new to bitcoin but not new to the stock market.  I know what stock buying on the dip means in terms of buying stocks, but am wondering exactly what does that mean when attempting to time a bitcoin purchase.

For instance, I notice that the 'market' for bitcoin is different than stocks.   Bitcoins trade 24 hours a day, whereas the stock market has a time limit.  There is a beginning and ending to each day.  Using a Candlestick chart pattern for a stock makes sense because the day does have a beginning and ending.  But in terms of Bitcoin, there is an "agreement" that a day should be something related to UTC . . . but still a 24 hour clock - which means candlesticks are kind of 'artificially' created because people want a visual reference and a way to determine technicals . . . if one believes in technical analysis.

A pullback or dip could then be determined by technical analysis - support and resistance, Moving Averages, RSI, MACD, or using other tools.  But it doesn't answer my question in terms of what is a 'dip' for a bitcoin buyer.

Bitcoins appear to trade in wild swings up or down, and from what I've read over 60% of trades are WASHES . . . which means the volume or trades are fake.

So when some bitcoin 'expert' suggests to 'buy on the dip' is that dip during a day trading scenario, a weekly scenario, a monthly scenario?    Would a bitcoin trader think of a 'dip' differently than a HODLer?     

This recent move in price from about $3200 to $4100 seems to be manipulated to me.  A jump in price is happening everyday.  Is that how bitcoin and crypto actually behaves?  That doesn't give much time for a person to make up his or her mind on whether to purchase or not.  They end up chasing.   A whale would love that.   (For instance I have decided to buy and sell on Coinbase Pro.  Lower commission.  BUT it takes 5, 8, maybe 10 days for money to actually appear in your account to trade!   That is so IRONIC considering the technology of Bitcoin, LTC and others are suppose to speed up transaction time.  But the system being used to add money takes days . . . a week . . . or more!   Of course using Coinbase is different than Pro . . . but if someone wants to make small bites at bitcoin, it doesn't make sense to pay 10% commission!   I checked.  For instance, a $10 dollar Bitcoin purchase on Coinbase asked for a .99 fee.  BUT a $100 purchase asked for something like 2.99 fee.   The small guy is on the hook for a higher % fee.   Coinbase obviously want people with $$ and not small fish . . . although the Whales want small fish to eat their $$.    I read the average buy for Cryptos is about $150.  If the average person is buying at that rate, in order to move the price higher requires Whales or Organizations to do so because small players can't make the market at this point in time by themselves in my opinion.)

What would a ''dip' now represent for a HODLer . . . hoping to retest an area around 3600?  or how about the off chance of retesting 3200?  In stocks, once passing an area of resistance can become 'support' and therefore I'm inclined to think that that might be the kind of 'dip' some a referring to.  The problem, many don't say exactly what kind of 'dip' they are expecting relating to what kind of chart . . .4 hour, daily, weekly, monthly, etc.

OR is a dip having nothing to do with an area of resistance or support . . . but has to do with a price drop of 10%?  or placing a personal 'dip' price of correcting 5%, 10%, 15% or anything one assigns to it?

Hope I get some honest questions as to how some folks view buying on the dip; and if not successful at that, there is always the buying once a week on a set day regardless of price.  I suppose that's the HODL approach . . . which I do not intend to be stuck in front of my computer the rest of my life tying to gauge a market at least 50% controlled by folks or organizations that have a world of bitcoin to manipulate the market.    I just want to participate.
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December 21, 2018, 12:39:34 AM
 #2

when the price is falling like this then we have to buy as much as possible, so when the bull run occurs we will get huge profit.
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December 21, 2018, 03:13:42 AM
Merited by TheBunting (1)
 #3

For your typical "hodler", a dip is simply just a drop in price. I'm sure only a very small percentage of the "hodlers" are actually decent traders, so if someone says "buy the dip", then chances are, the person just said it just because the price dropped a certain percentage. Always remember that bitcoin and the cryptocurrency markets are hugely unregulated, so expect a lot of amateur "investors" in this space. Not to mention that "buy the dip" is also being used as a meme nowadays since the bear market started, when people thought price $x was the floor, but it continued to drop lower. Buy the dip!


So refreshing actually having a good well-thought question here in Bitcointalk.

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December 21, 2018, 03:19:25 AM
 #4

buy the dip... means the opposite of buy at the tip

    /\
   /  \
_/     \_/


in essence:
BUY LOW, SELL HIGH
not
BUY HIGH, SELL LOW

I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
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December 21, 2018, 03:38:47 AM
 #5

For your typical "hodler", a dip is simply just a drop in price. I'm sure only a very small percentage of the "hodlers" are actually decent traders, so if someone says "buy the dip", then chances are, the person just said it just because the price dropped a certain percentage. Always remember that bitcoin and the cryptocurrency markets are hugely unregulated, so expect a lot of amateur "investors" in this space. Not to mention that "buy the dip" is also being used as a meme nowadays since the bear market started, when people thought price $x was the floor, but it continued to drop lower. Buy the dip!


So refreshing actually having a good well-thought question here in Bitcointalk.

Yeah I definitely agree. Back in January is when I started investing and thats when the dip started. As the prices dropped I seen oppertunies to buy at a “discount” when it was infact going to plummet far more. I hadn’t spent any time learning about technical analysis or anythingas to why this was happening. I just thought it was a Sale for Crypto. Now come the end of the year and I have been studying charts etc.

It is very useful to learn these things, aswell as looking into the projects and teams behind all these coins and not just investing in them because they are “popular” or because they are down 50% in the last 30 days. Look at the whitepaper and the team, see if there are any legitimate, solid members in the team.

I can now say that after doing these things it has made me invest a lot more cautiously and I just wish I done that sooner rather than later Smiley
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December 21, 2018, 03:49:01 AM
Merited by Red-Apple (1)
 #6

This is going to be a lot of work..


I'm new to bitcoin but not new to the stock market.  I know what stock buying on the dip means in terms of buying stocks, but am wondering exactly what does that mean when attempting to time a bitcoin purchase.
Fundamentals like "news" are much less important in crypto because surely the whales have the "news" before you..

For instance, I notice that the 'market' for bitcoin is different than stocks.   Bitcoins trade 24 hours a day, whereas the stock market has a time limit.  There is a beginning and ending to each day.  Using a Candlestick chart pattern for a stock makes sense because the day does have a beginning and ending.  But in terms of Bitcoin, there is an "agreement" that a day should be something related to UTC . . . but still a 24 hour clock - which means candlesticks are kind of 'artificially' created because people want a visual reference and a way to determine technicals . . . if one believes in technical analysis.
No, days in the stock market are artificially created.. 1m 5m 15m 30m 1h 6h 12h etc. candles in either are not artificially created, neither is a 24h candle in crypto, but a "1 day" candle in the stock market is not truly "1 day", but it is in crypto..  Crypto never sleeps..


A pullback or dip could then be determined by technical analysis - support and resistance, Moving Averages, RSI, MACD, or using other tools.  But it doesn't answer my question in terms of what is a 'dip' for a bitcoin buyer.
Those are all hocus pocus and work sometimes

Bitcoins appear to trade in wild swings up or down, and from what I've read over 60% of trades are WASHES . . . which means the volume or trades are fake.
Bullshit, they aren't fake.
Even if they are "fake" they still took a risk to make the "fake" trade because the market can move from under them in the time it takes to flip a trade to increase volume.
If I trade BTC and only barely break even on my trade on a 0% fee exchange it is not fake, it is just barely getting by by the skin if my teeth.


So when some bitcoin 'expert' suggests to 'buy on the dip' is that dip during a day trading scenario, a weekly scenario, a monthly scenario?    Would a bitcoin trader think of a 'dip' differently than a HODLer?     
Dips can happen 10X a day for a daytrader or once every 6 months for a HODLr.. A "dip" is whenever it gets oversold, downward momentum carries it beyond reasonable, reverse FOMO

This recent move in price from about $3200 to $4100 seems to be manipulated to me. 
What do you mean by "manipulated"? You mean traders are feee to do whatever they want? I don't see it as "manipulation" I just see it as TACTICS.
A jump in price is happening everyday.  Is that how bitcoin and crypto actually behaves?  That doesn't give much time for a person to make up his or her mind on whether to purchase or not. 
you have to be fast if you want to daytrade, duh..
They end up chasing.   A whale would love that.   
Then the whale wins.. So??
(For instance I have decided to buy and sell on Coinbase Pro.  Lower commission.  BUT it takes 5, 8, maybe 10 days for money to actually appear in your account to trade!   That is so IRONIC considering the technology of Bitcoin, LTC and others are suppose to speed up transaction time.  But the system being used to add money takes days . . . a week . . . or more!   
Because you are transferring FIAT!!! You think the FIAT magically gets fast when you are trading against crypto? Nope
Of course using Coinbase is different than Pro . . . but if someone wants to make small bites at bitcoin, it doesn't make sense to pay 10% commission!   
Then don't..
I checked.  For instance, a $10 dollar Bitcoin purchase on Coinbase asked for a .99 fee.  BUT a $100 purchase asked for something like 2.99 fee.   The small guy is on the hook for a higher % fee.   
You think it is less work for CB to manage $10 in an account that $1,000? No..
If anything they are cutting the small guy a break charging him less

Coinbase obviously want people with $$ and not small fish . . .
Who doesn't?
although the Whales want small fish to eat their $$.    I read the average buy for Cryptos is about $150.  If the average person is buying at that rate, in order to move the price higher requires Whales or Organizations to do so because small players can't make the market at this point in time by themselves in my opinion.)
The market moves with sentiment.. Maybe whales can manipulate some pattern to provoke a sentiment once in a while, but whales can only just psycologically effect the market..

What would a ''dip' now represent for a HODLer . . .
Right now..
hoping to retest an area around 3600?  or how about the off chance of retesting 3200?  In stocks, once passing an area of resistance can become 'support' and therefore I'm inclined to think that that might be the kind of 'dip' some a referring to.  The problem, many don't say exactly what kind of 'dip' they are expecting relating to what kind of chart . . .4 hour, daily, weekly, monthly, etc.
All of the charts and your best guess.. And you still might be wrong..
If you have this all figured out for the stock market then why would you even mess with crypto? Just go get filthy rich in stocks..


OR is a dip having nothing to do with an area of resistance or support . . . but has to do with a price drop of 10%?  or placing a personal 'dip' price of correcting 5%, 10%, 15% or anything one assigns to it?
Usually it is when it breaks resistance and then falls so fast it falls below reasonable = oversold = catch the knife, and then hope that was the actual bottom..
It has momentum and goes further than it should in both directions..


Hope I get some honest questions as to how some folks view buying on the dip; and if not successful at that, there is always the buying once a week on a set day regardless of price.  I suppose that's the HODL approach . . .

which I do not intend to be stuck in front of my computer the rest of my life
Then but at ANY time and HODL..
If you aren't willing to stare at charts for 6-10 hours a day then just buy anywhere and hold for a year +..
If you aren't willing to put in the time/work then the better traders that are will rightfull take your money from you on the exchange for being better than you


tying to gauge a market at least 50% controlled by folks or organizations that have a world of bitcoin to manipulate the market.    I just want to participate.

NO! They WIN.. They have the money and time to WIN, and you lose because you don't..
Bitcoin, if anything, is the FREEEST market, may the best man win..

You think you are going to beat the guys that have 100mm$ and teams on shifts 24/7 trading because you think you can read some technicals?
No, they are going to set the technical up on you and take all of your money..



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December 21, 2018, 04:02:00 AM
 #7

"buy in the dip" is just a marketing slogan to attract new speculators when the bitcoin price has fallen again, it increasingly works worse.

spikes get smaller dumps get deeper.

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December 21, 2018, 04:03:20 AM
 #8

"buy in the dip" is just a marketing slogan to attract new speculators when the bitcoin price has fallen again, it increasingly works worse.

spikes get smaller dumps get deeper.

Yeah, it didn't just go to $20k...

Its been going down ever since it was $0.00100  ..
Wait..

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December 21, 2018, 04:13:36 AM
 #9

"buy in the dip" is just a marketing slogan to attract new speculators when the bitcoin price has fallen again, it increasingly works worse.

spikes get smaller dumps get deeper.

Yeah, it didn't just go to $20k...

Its been going down ever since it was $0.00100  ..
Wait..

well i dont think you can now, as easy, trick the masses into thinking you are about to create the future monopolistic global currency, as it was during the hype, the people now think about a token not a global currency. when it comes to bitcoin.

i said multiple times the world in which bitcoin and its index mafia dominates everything looks like a postapocalyptic wasteland with huge miner dynasties, and the cryptoindex mafia being the incompetent and greedy power centres.


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December 21, 2018, 04:31:10 AM
 #10

buy the dip... means the opposite of buy at the tip

    /\
   /  \
_/     \_/


in essence:
BUY LOW, SELL HIGH
not
BUY HIGH, SELL LOW


i like this - and agree that it's a simple explanation for your query. but in a situation when you think that you bought the dip and the price drops lower that you incidentally bought part of the tip and it goes like that for days... or weeks... haha, you're in for a test of confidence and tolerance.

but if you're patient enough to wait until price moves higher than your buy price - let's say you bought when price hit 3100 usd something and the present price is 4,000 usd something like now, it's okay to sell. you've gained already. enjoy your gains! or get in again and play. the speculation game fuels our greed and teaches us to manage it as well, so happy trading!  Wink
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December 21, 2018, 04:37:15 AM
 #11

buy the dip... means the opposite of buy at the tip

    /\
   /  \
_/     \_/


in essence:
BUY LOW, SELL HIGH
not
BUY HIGH, SELL LOW


i like this - and agree that it's a simple explanation for your query. but in a situation when you think that you bought the dip and the price drops lower that you incidentally bought part of the tip and it goes like that for days... or weeks... haha, you're in for a test of confidence and tolerance.

but if you're patient enough to wait until price moves higher than your buy price - let's say you bought when price hit 3100 usd something and the present price is 4,000 usd something like now, it's okay to sell. you've gained already. enjoy your gains! or get in again and play. the speculation game fuels our greed and teaches us to manage it as well, so happy trading!  Wink

this culture only creates a bigger and bigger volatility, nothing else, no new market support and no new social support will enter that.

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December 21, 2018, 05:06:11 AM
 #12

buy the dip... means the opposite of buy at the tip

    /\
   /  \
_/     \_/


in essence:
BUY LOW, SELL HIGH
not
BUY HIGH, SELL LOW


i like this - and agree that it's a simple explanation for your query. but in a situation when you think that you bought the dip and the price drops lower that you incidentally bought part of the tip and it goes like that for days... or weeks... haha, you're in for a test of confidence and tolerance.

but if you're patient enough to wait until price moves higher than your buy price - let's say you bought when price hit 3100 usd something and the present price is 4,000 usd something like now, it's okay to sell. you've gained already. enjoy your gains! or get in again and play. the speculation game fuels our greed and teaches us to manage it as well, so happy trading!  Wink

this culture only creates a bigger and bigger volatility, nothing else, no new market support and no new social support will enter that.

i agree with you, but what i said was just in response to the poster's question.

the culture will only change when the market becomes mature. but since bitcoin was introduced, the very few people that acquired a deeper understanding of bitcoin and the blockchain's philosophy and intentions are the ones that matured and are waiting for the periphery to catch up. incidentally, those whose level of bitcoin maturity are still below the intermediate levels are many and are mainly focused on bitcoin's speculative nature....

so it'll be that way maybe for as long as it's just perceived as a speculative tool.
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December 21, 2018, 05:24:21 AM
 #13

buy the dip... means the opposite of buy at the tip

    /\
   /  \
_/     \_/


in essence:
BUY LOW, SELL HIGH
not
BUY HIGH, SELL LOW


i like this - and agree that it's a simple explanation for your query. but in a situation when you think that you bought the dip and the price drops lower that you incidentally bought part of the tip and it goes like that for days... or weeks... haha, you're in for a test of confidence and tolerance.

but if you're patient enough to wait until price moves higher than your buy price - let's say you bought when price hit 3100 usd something and the present price is 4,000 usd something like now, it's okay to sell. you've gained already. enjoy your gains! or get in again and play. the speculation game fuels our greed and teaches us to manage it as well, so happy trading!  Wink

this culture only creates a bigger and bigger volatility, nothing else, no new market support and no new social support will enter that.

i agree with you, but what i said was just in response to the poster's question.

the culture will only change when the market becomes mature. but since bitcoin was introduced, the very few people that acquired a deeper understanding of bitcoin and the blockchain's philosophy and intentions are the ones that matured and are waiting for the periphery to catch up. incidentally, those whose level of bitcoin maturity are still below the intermediate levels are many and are mainly focused on bitcoin's speculative nature....

so it'll be that way maybe for as long as it's just perceived as a speculative tool.

i am trying to help crypto become mature https://bitcointalk.org/index.php?topic=5086287.0

but corruption is still to big, and short term greed is still to big.

so i have to wait and observe more pain comming over them.

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December 21, 2018, 05:36:17 AM
 #14

Honestly no need to go technical just by understanding the term.

It's quiet an opportunity or should I say an entry point wherein a certain trader can consider entering the market or make another rounds of accumulation. Anticipating that a certain bull run will happened later on, some trader always buy during dips.

What if the price went down more? That's the time now to just repeat the process of "buying the dips" if there's some extras ammos left at traders respective wallets or will just patiently wait for uptrend.

Technical details will follow if necessary.

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December 21, 2018, 09:39:28 AM
 #15

Buy the dip simply means buy when the value drops like when ETH drop from $400 to $100 and you buy at @$100 you are buying the dip

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December 21, 2018, 09:47:02 AM
 #16

Buy the dip simply means buy when the value drops like when ETH drop from $400 to $100 and you buy at @$100 you are buying the dip

What happens when the price continues to fall? Did he buy the dip or did he catch a falling knife?

Bitcoin is not a bubble, it's the pin!
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December 21, 2018, 10:43:12 AM
 #17

I believe that when buying, all investors should believe in Bitcoin and buy it when the price falls. That negative news could not force investors to sell their coins

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December 21, 2018, 10:58:52 AM
 #18

Crypto market is volatile, respecting its this nature, buying at a dip means there is a price fall in the market to a percent at which a person wishes to buy. A dip is a price fall, people do buy at the dip, which can be smartly profitable.
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December 21, 2018, 10:58:57 AM
 #19

Well said OP, dip is better trade long terms. But question is where is dip? And what does mean dip? Actually no one can say exactly where is the dip. There is different mean of dip. Some looking for weekly dip someone looking for monthly dip. So it's depend on you how you are going to trade and depend on crypto market. Especially for Bitcoin very difficult to identify accurate dip. Like last few days ago dip was 3K something but who know it will pump from here or it will go more dip. Peoples start giving prediction once dumping and pumping. If dump up to 3K people's will predict it will go more down. If price 4K they will predict it will go more up. So it will never end. Depend on you how are you going to trade. For short trade monthly dip is better in my opinion. However best of luck for OP on crypto world.

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December 22, 2018, 11:34:40 AM
 #20

Buy the dip simply means buy when the value drops like when ETH drop from $400 to $100 and you buy at @$100 you are buying the dip

What happens when the price continues to fall? Did he buy the dip or did he catch a falling knife?

it depends on why they are buying. i always hate it when people generalize things!
for example for a short term trader who is active in the market when a shitcoin drops from $400 to $100 that is considered a great opportunity to buy because that IS a dip for him because he will sell on the dead cat bounce on something like $170 and gets out with his profit.

but for a newbie who thought he was making an "investment" it was catching a falling knife because that shitcoin is going to fall more and most probably is not going back up again.

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