As the saying goes: buy red candles, sell green candles. In this article, we are going to show you why you should buy bitcoin now, so you can avoid the traps that get new investors to buy the top and stay holding a heavy bag of BTC, or even worse, sell for a loss.
The current BTC price action at this time is chaotic, to say the least. However, this does not mean that the bull run is over, in fact, we are just getting started. Now let’s see why this is an excellent opportunity to start buying BTC and your favorite digital currency.
Why is BTC under its all-time high right now?
Everything that goes up a lot, will also fall eventually. This also applies to the BTC price and cryptocurrencies in general, especially when there are factors such as:
- ETF options expiry
- False rumors about Facebook buying BTC
- Elon Musk saying that BTC is too high (source)
- Failing to break resistances
- Failing to hold support levels
It’s a lot of reasons that have led BTC to the current price, and to be honest, the Price Action is full of uncertainty and no showing signs of recovery. At the time of this article – April 29 – the bears are in control of the price.
Now, this scenario makes it easy for new investors to leave the market with a loss as the danger of losing their investment becomes bigger… but is it really the time to sell?
In fact, no. As it seems, the bull run is still not over, and instead of selling, this is a great opportunity to start scaling in BTC. We will explain what this means in the next section.
How to start buying BTC during the current market situation?
Instead of going all in on BTC right now, it’s better to stay buying in batches. This is not a prediction, but based on the current Price Action and market structure, it’s likely that we will rise to levels above 54,000, approximately 55,000 and then we can expect a pullback because the price has failed to get out of the resistance multiple times.
Therefore, if you want to buy digital currency right now, it’d be a good idea to start scaling in with a small position like 5-10%, so you can keep buying the dips. Because once BTC catches its trend again, we can expect it to rise to the current ATH and beyond.
Of course, this is just an observation and not financial advice. The advice here is to have a plan, and it’s to buy in batches. In the end, you will end up making more profit in the long run. You will have an excellent entry price near the bottom and a solid position.
Now, let’s talk about how you can play altcoins during this market situation.
How to buy altcoins during the current BTC scenario?
When BTC dumps, altcoins also dumps. When BTC pumps and BTC dominance pumps, altcoins tend to dump even harder. Until there’s no clarity in BTC, it’s not a good idea to start buying altcoins right now.
Similar to the BTC advice, it’s a better idea to start scaling in at a slow pace. You can start with a purchase of 2.5-5% right now and keep buying as it dips further because this is what the current market structure tells us.
We would recommend you to be very careful with altcoins right now because the main player is BTC right now. When it finally takes a decision, and if it turns to be bullish, then you can expect a major run, and hence, the altcoins will suffer.
We recommend you to put BTC first, and if you really want it, then start accumulating altcoins at a very slow and patient pace.
If you don’t know how to execute technical analysis, then stick to fundamental analysis. During a dip, this will help you to spot great buys that could bring you a good profit once the market resumes its bullish trend.
Pro tip: Avoid longs and shorts during this market scenario. It’s very easy to get burned. Let’s take a very recent example with BNB.
As of April 29, BNB had a nice bullish trend and many traders opened a long at $595 with the expectation of reaching $700 – and it started to rise until reaching $616… only to dip back to $560-$570 levels. If you used too much leverage, then it would have been enough to kill your position.
Now you know the right knowledge and tips to start making the correct decisions during this market scenario. If you have questions, let us know in the comments so we can help you to make the most out of this current trend.