Bitcoin price on the dip, those who were waiting for the dip, this is the best opportunity to buy and don't think that it will dip below this to your own price target if not you will miss the opportunity now. Those who are prepared for the dip are smiling and buying why weak hands will panic and sell. I have my reserve funds on ground and I have taken advantage of the dip to increase my bitcoin stash.
If you don't have spare cash, continue with your DCA, you might be lucky to buy when the price dips at a discount price, the most important thing is that keep on adding more stash to your portfolio and hodli.
Guys who are continuously DCAing will sometimes miss the dip, and they should not let that bother them. They sometimes run out of money because they are already continuously buying, and it can be difficult to catch the exact dip or to know if the dip prices will last until their next money comes in. Maybe every week they buy on Wednesdays or maybe they get their money on Wednesdays and so they sometimes will buy on Wednesdays or they might wait to see if there might be an opportunity to buy during the week.
Try not to get bothered by up or down movements in the price, especially if you are new and you are focused on building your stash. It can be distracting to get worried about the dip or to speculate that you had missed out buying on the dip because the BTC price was not dipping when you already had made your weekly BTC buy.
It can feel stressful during these times, yet if you already know that you are putting something like 10% to 15% of your income into bitcoin, and over 6-10 years maybe you would have invested 1-2 years of your income into bitcoin, and surely some of your earliest buys will have had been the most profitable, yet at the same time, you likely have many small buys over every week, and so 52 times per year and 520 buys over 10 years, and even though they added up to a lot of money, each one of the buys did not necessarily seem like a lot of money... Just do your best to figure out a comfortable balance, and there might even be some weeks that you do not have enough money to buy on those weeks, so these times can sometimes cause you to feel like you are missing out on buying opportunities.
The fact remains that no one can consistently catch the DIP, even those who are considered to be professional traders. Folks who always attempt to time the market often lands themselves in emotional decision making, frustration or even a far more worse situation. But those who stick to a consistent DCAing have the upper hand as they manage to free themselves from that emotional rollercoaster of having to overthink or over analyze the market before finally making a decision, which sometimes even end up being the worst decision of their lives.
When one engages in regular buying, whether its weekly, twice a week or monthly, youve also got the advantage of averaging out your entry price overtime. Some might say this approach might make one miss out potential buying opportunities during DIPs, that could be true in most cases, but looking at it on the bright side, youll also be able to avoid buying too much during market peaks. And youll discover that those ups and downs automatically balances out, and thats one of the reasons why the DCA is considered to be a very powerful and efficient strategy.
I also love the point you made about staying within a set percentage of ones income, like 10% to 15%. This is also a very powerful approach, because when one stays within a particular percentage of their income, it helps them avoid overextending themselves financially and most importantly, it helps one make sure that their Bitcoin holdings doesnt come at the expense of their peace of mind. Some weeks might take an unexpected turn and one could potentially miss their regular buys due to unexpected turn of events, and thats just normal for every investor, the most important thing is that youre being consistent over the long term, thats where the success of your investment lies and necessarily the perfect weekly buys.
If you actually think about the whole thing, 500+ small buys over a period of 10 years may not really look like something significant when you look at it, but the truth is that they really do add up to something meaningful. The earlier the buys, the more profitable they are, but that doesnt mean the later ones doesnt make their own contributions towards lowering the average cost and of course making your long term position more stronger and solid than it already is. Bitcoin mostly rewards those who are patient and have conviction more than smartness.
So whenever theres a sudden market movement, specifically a DIP and you feel like youve missed out on potential opportunities simply because youve managed to stick to a consistent DCA, just take a moment to remind yourself that youre doing what most investors wouldnt do, which is to stay disciplined and committed to a particular strategy without being moved along with the market conditions. The reward might not come instantly but youd be happy you stuck to your long term plans when it starts to pay off.
