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    Dip or discount? Crypto community schools us on market moves

    2024.01.26 | exchangesranking | 38onlookers
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    From buying more crypto to dollar-cost averaging (DCA), crypto community members shared their strategies for navigating crypto volatility and market dips. 

    After Bitcoin (BTC) reached a high of above $48,000 on Jan. 11, the market took a dive toward $38,000 on Jan. 23, leaving traders who bought at the 2024 peak at a 21% deficit. Because of the market dip, Cointelegraph reached out to crypto community members on X (formerly Twitter) to ask about their moves in such a volatile situation.

    In a reply to the thread, trader Moe Iman brought up dollar-cost averaging (DCA), which is an investment technique that lessens the impact of volatility by spreading out the total amount invested in multiple purchases of an asset. Iman also said that it’s important to “take profits on the top” and not get attached to the holdings so they can liquidate and reenter at the right times.  

    On the other hand, crypto influencer Helin Ulker opts for a simpler strategy, which is buying more as it drops and waiting patiently. A community member echoed this sentiment and reiterated that buying more is the strategy. The X user said that it was not a dip but rather a discount on the crypto assets. 

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    Another community member said that it would be wise to “stay calm” during market dips and reassess investment goals. According to the X user, diversifying the portfolio, staying informed of the market trends and setting stop-loss orders for their positions would be optimal. “Patience and a long-term perspective can help you navigate volatility more effectively.” 

    Meanwhile, on-chain data shows that BTC whales have been buying the dip. Data from intelligence firm Glassnode shows that entities with a balance of 1,000 BTC or more increased by 3% when the spot BTC ETFs began trading. The behavior shows that whales may be expecting BTC to surpass its previous 2024 high.

    BTC hovers above the $41,000 price point at the time of publication, while the total crypto market capitalization is at $1.68 trillion, according to coin price tracker CoinGecko.

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