 In crypto we see many little dips and then every now and again we tend to see some very big dips that we might call corrections or crashes. Both little and big dips can make sense to buy depending on your investing strategy. If you are range trading then little dips are great to buy. If you are a long-term investor then the big dips can be rewarding for building long positions. Of course timing the bottom of those dips is next to impossible and can be a false airing and that is why it can help to dollar cost average as a price falls if done properly. Today I'm going to show you guys how to buy the dip properly and strategically whether it be with crypto or any other asset. All versions of this strategy aim to buy at low prices rather than high ones by buying when others are selling. Hey what's up Jay here and welcome to Bitcoin Daily bringing you guys the best tips tutorials and ideas to help you become a profitable and successful trader or investor. The goal of this channel is to provide you with the resources and empower you with the knowledge to help you get to that next level. So make sure to subscribe like and share this video as we continue to spread this powerful message and spread the adoption of cryptocurrencies. So first of all guys this strategy isn't guaranteed to be successful but it is a smart and simple investing strategy that doesn't take much skill or technical know-how to implement. For this strategy to work one has to use a little counter-intuitive logic and fight off some common emotions specifically one must put aside the fear that comes when everyone is selling during a correction and two put aside the impulse to buy high when it seems everyone is buying. It's harder than it sounds right. If you guys want to add technical aspects you can look at things like moving averages support levels rsi and volume to get a sense of how low a price might go and get a sense of when a recovery is likely with the technicals added in buying the dips can become a pretty solid strategy with a high success rate without them it is still generally better than formal buying the top or panic selling in a stagnant or bull market when the price pulls back as of course in cryptocurrency there will be a pullback crypto is volatile. All right so let's talk about some keys to buying the dip so one question that you always need to ask yourself is what is the overall trend general wisdom says buy the dips in an uptrend and sell the rips in a downtrend trading with the trend is always the path of least resistance do not make it harder on yourself I always got to tell people this another question you should ask yourself and try to figure out if it's a good time to buy the dip or not why did the price dip try to understand why the dip happened are there any fud or rumors going around that might have a temporary impact on bitcoin is bitcoin currently overbought and consolidating and might need some time to cool off before the next move up these are all questions that you need to kind of figure out in your head when deciding whether or not to buy the dip now here's some tips to be successful with the strategy you can dollar cost average what that means is buying incrementally as the price goes down creating an average position and aiming to buy more as the price decreases further this can help you to build a long-term position or to make a quick buck when the price and volume pick back up we have a video tutorial on this topic that you guys can check out right there so if your dollar cost averaging you do need to have a higher risk tolerance because you know you're buying as a price decreases and it could take a while sometimes for the price to come back up to whatever your average entry is I know a lot of people in 2018 probably experienced this as a price hit all-time highs and then dropped slowly all the way back down they probably ended up selling somewhere and just ended up in a loss overall so if you want to try to avoid that you can try buying with momentum what you do is you wait until the price settles and perhaps even shows a sign of recovery and then buy at that point when it's bouncing at a support level or breaking out from a previous resistance that means there's momentum in that trade and it might be a good time to use that momentum as you're by the dip entry the next tip is use key historic support levels so you want to set buy orders at lower prices and let them fill setting buy orders just before historic support levels and psychological levels is an especially good strategy use top-down analysis starting from higher timeframes and working your way down to find these levels if you don't know how to do a top-down analysis then I recommend that you check out this video that we did on the topic we always want to make the right moves but no one is right all the time if you need to be ready to take a loss with a stop if you have profits considering taking some profits no one can time every bottom or top so lock in some gains when you have them timing and buying the bottom of the dip can be not only hard but sometimes impossible to pull off buying the dip in a crash can often be a fool's errand in cases like this you more so end up dollar cost averaging down the side of a mountain watching any asset lose value is stressful trust me I know but there is a lot of precedent for this paying off in cryptocurrency when we are talking about buying the dips on top coins like bitcoin and ethereum guys no plan is foolproof but the logic here is this it is better to miss time buys at the bottom than to miss time buys at the top that's why buying dips trumps fomoing on rallies even under the worst market conditions I hope you guys are enjoying this video so far next we're gonna look at some actual real-time charts and look at different situations where you should have bought the dip and where the dip has paid off in the long term guys if you're finding value in this content then please go ahead and punch that subscribe button punch that like button one time let me know in the comments guys did you buy this recent dip from 42k down to 30k I said it in various posts and videos to buy the dip hopefully you guys listened if you did let me know in the comments all right so now we're going to look at some charts guys and I want to take you back in time let's take a look here at the previous halving back in 2016 you can see just before the halving that we had a big dip over here right so we had a 18 drop off there and then we just continue down um basically went from the high of 791 down to a low of 469 right so the halving took place on july 9th right so that was kind of this candle right here where we had a little bit of green and then we just continued down right so at this time we were the rsi you can see was very overbought after this large run right here we had a 22 percent week uh 7 percent week 18 percent week 12 percent week so it was a four weeks in a row of just going up you know this run started at a low of 436 basically and ran up to 791 so in a matter of a month it almost doubled the price that was the opportunity to buy a dip right there let's continue if we look now to january january we had a drop of 9 percent and then on the second week we had a drop of 10 percent that again that was another opportunity to buy the dip because then we ended up going from the low of 724 to the high of 1337 basically doubled your price then in march 2017 had another dip all the way we dipped all the way down to 890 dollars if you would have bought that dip look at this takeoff right here guys insane right so i went from from a low of 890 to a high of 3017 dollars guys then of course boom another another dip we had one two three four five five weeks of just a correction and consolidation and all that we ended up going from 3000 dollars all the way down to a low of 1810 and then boom in july exactly one year after the halving basically took off again and we ended up going from a low of 1910 to a high of 5000 and 13 dollars then again another dip we went we dropped all the way down to 2939 another huge correction three weeks of consolidation and drops and then boom takeoff this was the entry right here and let me show you why of course hindsight is 2020 but look at this there was a tail sign there was resistance right here where we got rejected last time and when we broke through this that's when we took off so if you would have taken that into account this is where you were looking to buy and just like that it bounced all the way off then we had another dip right we dropped here this this week in november we dropped 20 before of course taken off to all time highs boom so if you would have bought this was literally the very last dip of this bull run we went from a high of 7950 to a low of 5464 if you would have entered here around this level um you would have been able to write it up all the way to 20k crazy right so now we're looking at the most recent run that we're currently on that started last year and you can see all these opportunities here where you could have bought the dip right there hasn't been a lot of them but there's been some there hasn't been any major corrections until now this is the first major correction of this entire bull run since it started and come on guys we've all been expecting some sort of pullback some sort of correction because we are in oversold territory so this might just this could well be just the beginning of this pullback and this correction um and we could still see this consolidate in this range right so this could just kind of consolidate like this as the rsi kind of drops below that 70 mark here's a tip when using the rsi if the rsi is really high like 70 plus on all time frames then the asset is considered overbought the rally probably only has so much longer to go before a dip at that point if the rsi is really low like 30 or less on all time frames we are oversold by that indicator there is no actual limit to how high or how low the rsi can go but if you look at the charts then you will see that the oversold and overbought states are not the norm and are generally not suited for long term simple indicators like this can help you time your buys when looking to buy the dip just remember indicators help you analyze historic data they can't predict the future so let's take a look at uh major corrections from all time highs this started tracking bitcoin september 2010 till today this is by uh charlie belejo belejo belejo i'm not sure how he pronounces it but it's my boy charlie so specifically we're gonna go ahead and look at 2017's bull run right so in 2017 uh we saw right here from march 10th to the 24th we saw a correction of 14 days from a high of 1326 to 892 that was a correction of minus 33 percent days that it took to get to a new high was 48 days from the low then we saw another correction from june 11th to july 16th where it lasted 35 days or the price went from 3025 down to 1837 for a 39 percent correction it took 55 days to get back to a new all time high then we saw another one september second to september 15th this this one lasted 13 days we went from 514 to 2951 a 41 percent correction this one took 40 days from the low to get to a new high then again in november from the 8th to the 12th this one only lasted four days from 78 79 to 5507 a 30 percent correction and it took only eight days to get to a new high and then of course we saw the bear market which started uh december 17th which is when we printed the all-time high and it lasted all the way to december 15th that's when we printed the bottom which was 3122 and that was 363 days of correction of a correction period right and before we were able to see a new high it took 1079 days guys that was a drop of 84 percent from the top of it to the bottom of it right and now we're in our first correction period which is from january 8th till we don't know yet it's lasted so far what about four or five days we went from the high of 41 962 to 30 863 basically a 26 percent decline so do i think we're going back into a bear market where it's going to take a thousand days definitely not a thousand 181 days 211 days 631 like we're not there yet this this bull run i believe just started um so this is just the first major correction that we've had in this bull run so what that tells me that it's the perfect time to buy these dips because we are looking to trade with the trend and so that means that anytime there's a dip or a correction like there has been in the last week that means it's time to buy all righty guys that covers everything that i wanted to talk about i hope i provided you guys with some new knowledge some new um strategies on and and some new views and ideas on what to do during these correction periods where people most people are probably panicking and probably selling at a loss the whole idea in trading is to buy low and sell high so i always ask why are people buying high and selling low they're doing most people do it the opposite way so don't be most people if you guys have enjoyed this video make sure to hit that subscribe button guys make sure to hit the like as well and drop a comment let me know what you guys think is the next new all-time high for bitcoin um and let's have a little chat let's have a little combo in the comments guys i appreciate you guys so much i hope you guys truly enjoyed this video i will see you on the next one as always peace and love