With Bitcoin currently at $86k, it’s safe to say buyers are constantly buying the dip which has resulted in increased momentum in favor of the bulls. I’m excited Bitcoin is picking up again, it stayed below $80k for too long. Even though i knew it was due to market correction, i just kept wondering if it will drop further below $70k in the coming bear market. As a new investor, do you think it’s best to start DCA or to wait for the bear market before investing ? What’s your opinion on this ?
Statistically speaking, the "buy the dip" strategy, i.e. buying during the bear market, yields better returns than the DCA strategy. But, unlike the DCA, which is newbie-friendly and anyone can pull it off, trying to time the market is a different story, as it requires some knowledge and constant market monitoring.
So I guess it all depends on the amount of time you want to put in and how active you want to be in trading.
When looking at the past charts, everything seems so easy, but predicting future price action is way harder than it seems. The current situation is a good example, people can't even tell if we're still in the bull market, or are we on the way down.