Crypto Enthusiasts Share Strategies for Handling Market Dips; BTC Whales Anticipate Future Highs
Summary:
Crypto community members share their strategies for handling market volatility and dips on social platform X (formerly Twitter). These techniques range from buying more crypto during dips, dollar-cost averaging to spreading out investments, setting stop-loss orders, and diversifying portfolios. Meanwhile, on-chain data reveals that major Bitcoin holders, termed 'whales', have purchased more during the recent dip, anticipating that Bitcoin will recover and exceed its previous 2024 high.
Crypto enthusiasts have revealed various strategies they employ to handle the uncertain cryptocurrency market, especially during sharp declines. Bitcoin (BTC) had reached an all-time high of over $48,000 on January 11 before suddenly slumping to around $38,000 on January 23. This left those who invested at the peak with a 21% shortfall. In light of these events, Cointelegraph sought the thoughts of crypto community members on the social platform X (formerly Twitter) on how they manage such unpredictable situations.
Moe Iman, a trader, mentioned dollar-cost averaging (DCA), a method which spreads the total investment across multiple purchases of an asset to mitigate the effect of market volatility. He emphasized the importance of strategizing to "profit at the peak" and avoiding emotional attachments to assets so as to sell and buy back at the right times.
On the contrary, Helin Ulker, a crypto influencer, adopts a more straightforward approach of buying more of the asset as prices fall and then patiently waiting. This viewpoint was reaffirmed by another community member who insisted that purchasing more during a market downturn was the best tactic, referring to the slump not as a dip but rather a sale on the cryptocurrency.
Another member advised maintaining composure during market dives and reassessing investment targets. This individual suggested diversifying investments, monitoring market patterns, and setting stop-loss orders for all positions as the best course of action. They concluded, "Patience and viewing the situation from a long-term angle can better help you cope with the market's instability."
According to recent on-chain data, BTC whales have been taking advantage of the downturn to purchase more coins. Information from analytic firm Glassnode indicates that accounts holding 1,000 BTC or more increased by 3% following the commencement of spot BTC ETF trading. This suggests that these high-rollers anticipate BTC to exceed its 2024 peak. At the time of news release, the price of BTC is hovering above $41,000, and the total market value of all cryptocurrencies stands at $1.68 trillion, as reported by CoinGecko.
Published At
1/26/2024 4:14:58 PM
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