What is the Dip?

[Magicalking]

I have been hearing people say "buy the dip". Memes about buying the dip have been trending on Twitter. Please what does it really mean to buy the dip? What happens when the dip dips? Is there a guide for this?
Here's a meme I recently saw and it has prompted this question


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[pooya87]

A dip is basically when price goes below the support line or better said below the intrinsic value. That definition makes a "dip" a worthy price to start buying. The problem is to figure out the difference between a dip (where you would want to buy) and a dump (where you want to stay away) which all comes down to intrinsic value which is a very difficult thing to measure. We could use some technical analysis and mostly look at the past performance and decide what intrinsic value of bitcoin is then decide based on that.

Lets take 2018 for example. Bitcoin's intrinsic value was somewhere between $6k and $8k so anything below those values was a dip and an excellent opportunity to buy bitcoin specially during the big accumulation phase in $6k range. As you can see today anyone buying bitcoin then is currently enjoying a 480% profit. This also means you can ignore the short term volatility, drama and market manipulation aka falling below $6k and reaching $3k.

On the other hand lets take ETH which had an ATH of 0.15 and to this day has never been capable of reaching that price again since it has been dumping consistently and is still way above its intrinsic value. Obviously you can still make profit from a dumping coin too but at a much higher risk as over the past couple of months they have been trying to pump it and there were good short term gains in those pumps but it still needs at least another 100% pump to get to where it used to be, let alone surpass it.

[Pokapoka124]

Buying the dip means buying crypto assets at cheaper or lower prices. The dip has a bottom but you can ascertain the bottom without technical analysis and fundamentals. There are thousands cryptocurrencies out there. For crypto assets with little or no utility, it's best to follow fundamentals. The goal is to buy low and sell high but buying the dip isn't as simple as it sounds it involves market timing n short no one knows for sure how the market will turn out but we do our best to be on the safe side. Resist the urge to fomo

[Upgrade00]

Lets take 2018 for example. Bitcoin's intrinsic value was somewhere between $6k and $8k so anything below those values was a dip

Do you consider intrinsic value to be speculative? From the definition of intrinsic to be the underlying value which an asset has based on it's fundamentals regardless of what the market value is at should it be volatile?
For example, some people expect Bitcoin to be going to $100,000 and some $1,000,000 despite the current prices, doesn't that indicate their own intrinsic value of Bitcoin (as it's subjective).

Please what does it really mean to buy the dip? What happens when the dip dips?

To buy the dip is to buy when the price drops below a certain range causing panic and fud. In such situations most are looking to sell their coins and are uncertain about what happens next, presenting a good buy opportunity.
If the dip, dips further, you buy further. This is of course if you trust the fundamentals of the project to bounce back.

[cryptoaddictchie]

You can see a lot of them now on every social medias since the market is free falling. Buy the dip become an expression of everyone when there is a red market going on. I admit I usually tweet this when my portfolio is down a lot. But I also do DCA so my portfolio will be averaged. Sometime you need to really be strong and brave when others are busy selling on a panic market.

Trading is really a big risky business that you need to be careful. Lots of people loss huge money in the process and some earn a lot with it.

[Tellek Garing]

You can see a lot of them now on every social medias since the market is free falling. Buy the dip become an expression of everyone when there is a red market going on. I admit I usually tweet this when my portfolio is down a lot. But I also do DCA so my portfolio will be averaged. Sometime you need to really be strong and brave when others are busy selling on a panic market.

Trading is really a big risky business that you need to be careful. Lots of people loss huge money in the process and some earn a lot with it.

The worst time to buy is when the price has already increased very much, buyers at the time are likely to lose. The best time to buy is during the dip, the price will increase, but there are exceptional cases when the price will dip more, but good traders use this to gain because they have more chance to profit during dip than loss.

[israt1@]

I have been hearing people say "buy the dip". Memes about buying the dip have been trending on Twitter. Please what does it really mean to buy the dip? What happens when the dip dips? Is there a guide for this?
Here's a meme I recently saw and it has prompted this question

Before you start trading a coin from a specific place, check where the coin started from. If it goes down to the beginning, it is called dip. If it goes further down, it is called dip. But you can not go to the dip. If you can buy dip, then it can not be said that you will get bump again.

[boyptc]

It's a common meme. When you buy the dip, another dip comes. Well, in that case, you just have to buy again if another dip comes. You don't usually know when a dip comes but if you consider the price is a dip.

You buy it.

But if you think that there's another one dip to come, the price recovers and you miss buying the dip.

[mk4]

What happens when the dip dips?

Then you buy the dip, again!

Obviously, such strategy requires a good amount of cash on hand, which a lot of people don't. And also, I really don't recommend this method. For beginners I'd recommend dollar-cost averaging[1] instead. Set your buys every week, and hold the coins for long amounts of time.

Is there a guide for this?

There is no set in stone guide for this; because it's merely just a concept.

[1] https://dcabtc.com/

[OcTradism]

You have two choices after you buy up a dip.

Wait for a bounce and take profit and don't care what will happen with price in long term. You are trading with a dip you bought. If price dives too much more, you can cut loss because you are trading, not holding.

Hold it for long term because you wait for a dip to accumulate more for your long term investment. It means you don't care about short term volatility. Even if price dives deeper, you will still confidentially hold your bitcoin.

Buy a dip means you are waiting for liquidations so it would be your stupid action if you use leverage and can not control it. If you can not control your appropriate leverage, and use too high one, your buy-a-dip buy orders can be liquidated too.

[Ryker1]

What happens when the dip dips?

Then you buy the dip, again!
^[snip]

Well, you are right, when there is a dip after a dip will come --just purchase again while in dip, I am considered as a dip when the price drop 40-50% and it is good to accumulate. However, I noticed that after a sudden dip there must a resistance, the price will go up again. So if you will buy in dip, there is a chance that it will rise up again. I don't know why people called them a dip, but for me, that is a correction price in the market because when you say it is a dip, it could be on a 95% price decrease which is really a dip. When you purchase bitcoin while at dip and the dip comes, just hold for it or just add bitcoin in your portfolio.

[sapnu]

I have been hearing people say "buy the dip". Memes about buying the dip have been trending on Twitter. Please what does it really mean to buy the dip? What happens when the dip dips? Is there a guide for this?
Here's a meme I recently saw and it has prompted this question


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The dip when it comes to the context of crypto is the same on its general meaning, suddenly going down but rising up once again afterwards. To further understand, let us compare it when you are dipping a nugget down a sauce. During the dip, the nugget is at its lowest but later on, it will be inserted to your mouth wherein it is at its highest. The dip is one of the opportunity that crypto enthusiasts wait for so that they can commit into massive buying. They are well aware that the dip wouldn't last for a while that is why they see it as the best time to buy and that is why they always say, buy the dip.

[libert19]

You check support, and do dca at every support.

[GreatArkansas]

"Buy the dip" famous line in cryptocurrency is become popular and yes it got very nice and good meaning. But some people also using it to lure some people especially those newbies, like "buy the dip" so they can sell more, like manipulation in somehow.
That's why there will always a meme about this famous line, like "They say buy the dip, but it still dips and dips". But this is one of the best ways to accumulate Bitcoin or other crypto if you intended to hold it for the long term, buying some amount on dips (depends on how you prefer the dip, like x % of dump then you consider it as a dip).

[Stalker22]

The idea of buying the dip is a popular investment strategy because you shouldn't wait until the next bull market to buy crypto assets. If you don't do this, you might find yourself left out of the next big wave.

I'm actually a buyer today. After a couple of days of beating around the bush, the conclusion is clear: cryptos are in a bear market and the big, slow accumulation phase is starting. Let's hope history is a good indicator.

[akirasendo17]

in my view buy the dip means that it's a desirable price where to buy a coin at a reasonable price, or might think as best price or a sale, like when you are buying things on Black Friday, we have a different opinion on buying the dip and that's what I think of it.

[CoolerSid]

so u can also can do mems with dip 

[GeorgeJohn]

I have been hearing people say "buy the dip". Memes about buying the dip have been trending on Twitter. Please what does it really mean to buy the dip? What happens when the dip dips? Is there a guide for this?
Here's a meme I recently saw and it has prompted this question

People have answered the question completely without any remainder, shall in addition to the answer, buying dip in cryptocurrency network simply means a way of buying asset when it have lost a values knowing that whenever it comes up you will be at positive side of it via surplus gain or profit, so that's the reason while whenever cryptocurrency is decreasing in values people are encouraged to purchase or buy and store because of future profit, so in other hands its it's a situation where by bitcoin or any other cryptocurrency dropped in price and you have the opportunity to buy.

[sheenshane]

Most of the line that users usually advise upon investing in Bitcoin or any cryptocurrency is "buying the dip" and the next line is "selling on high".  That's the correct way of investing in Bitcoin, so your question is, what will happen if the dip will continue.  Just hold until your profit was there in your portfolio and it means, that's the right time of selling your crypto.

Many people trap while buying at high because they don't know what actually the current status on the market, is it a high or in a dip.  But they determine on it when the market painted a red.  If you will patiently wait until the price is high, this isn't a big deal for you.

[BlackHatCoiner]

It's funny when people tweet “BUY THE FUCKIN DIP!1!”; they, unconsciously, try to pump Bitcoin by making others buy it at a bargain price. They should acknowledge that by doing it, they're ripping their future selves. Bitcoin falling from $50k to $30k was one of the funniest moments of Twitter. They kept reminding you to buy the dip, but it'd already fallen around 50%. 

For example, some people expect Bitcoin to be going to $100,000 and some $1,000,000 despite the current prices, doesn't that indicate their own intrinsic value of Bitcoin (as it's subjective).

Exactly.