When is the best time to buy bitcoin?

When is the best time to buy bitcoin ?

Every investor or potential investor in Bitcoin have asked themselves this question. The answer depends on many factors, your trading style, strategy, aversion to risk, market trend, trading time frame... If you think we are in an early growing market, every entry point are potentially interesting. No matter is the price when you buy finally you make a profit. But with some simple strategies you can maximize your risk/reward and buy at the best moment.

But firstly it is important to understand the technology behind the BTC, the Blockchain. If you can analyze the fundamentals you are gaining knowledge to anticipate a positive news flow and make money during a potential growth. Secondly it is important to know why you want to buy Bitcoin. With clear goals it will be more easy to embrace the growth of this new market. Buy in a bullish market otherwise your investment has more chances to lose value.

Buy the dip really... ?

What Is a Dip ? Buying the dip means buying when the price reaches a low, when the bitcoin experiences a significant drop in price. On the graph a dip is represented by a long wick. If the market is bullish in the long term, you can try to catch the lowest price of the trend. It requires some technical analysis competence. You can spot important supports and be patient waiting for the market to be oversold. To maximize your chances, you can place a limit order on a support or a Fibonacci zone where investors are ready to buy. Be careful you can burn yourself. Because buying a knife when is falling is dangerous, you are in a downtrend the price can fall indefinitely. Followed this strategy during the bursting of the dotcom bubble could have cost you a lot of money because internet companies lacked of revenue and viable business model.

Buying the dips only seems to work when the market is oversold. But the most profitable strategy is not to buy the dip but enter the market at the new high after the dip. You are going to increase your probabilities to have a winning trade. Buying a beautiful green candle just after a dip can significantly improve your risk reward.
You need some elements to place a buying order.

1. Market in uptrend at long term (hebdo or monthly)
2. Place a buy order above the highest price of candle dip
3. Place a stop loss under the dip
4. Enjoy the ride !

In 2017 we had 3 opportunites. For example the 17 of July 2017 the candle dip had high of $ 2044 so we could place our order at or above $ 2044.

Buy a Breakout

It is my favorite buying point to enjoy a ride with Bitcoin. This strategy work very well in a bull market and sometimes in range market when the downtrend is over. You just need to find the two most bullish pattern, a Tight base or a cup of handle. In a future article I will present them. We need to looking for a large consolidation where the price is reducing his volatility and beat several times a pivot point. We are waiting for the price to breakout above the pivot resistance price. If we see a significant rise of volumes it is time to buy. The probabilities of a winning trade are increased. This pattern are rare, you are to be patient but if you can catch it you can make substantial profit with a minimum risk.

Sell near the top

If you are a bitcoin fanatic you can hold until death. But it is worthless to buy at the best price if you don't sell at the best moment. So don't trade with your heat but with your head. In a future article we will see how to sell just after a trend reversal and maximize your trade.

There is not one best moment to buy Bitcoin but few moments where you can jump in the train and maximize your risk/reward. Keep patient like a surfer who is waiting to ride the best waves. With education, simple discipline, patience and a solid trading plan you can surf the best waves. Obviously it is quite impossible to ride all the trend but you can enjoy a large part. Simply buy when the trend is bullish and sell when the trend is bearish. Don't panic buy or sell, just wait for a bullish pattern. The market always offer opportunities to enter the game.