How to understand Bitcoin’s low buyback? How to judge the timing of Bitcoin’s low buyback?

As one of the most well-known digital currencies in the world, Bitcoin has experienced many cycles of sharp rises and falls, attracting the attention of many investors. When the price of Bitcoin falls, there is an investment suggestion that is commonly mentioned, and that is to buy the bottom. The term bargain hunting refers to an investment behavior centered on expecting a price rebound after the asset price continues to fall. However, bargain hunting is not without risks and requires investors to make decisions after careful consideration. Even so, risks cannot be completely avoided. A simple introduction cannot fully understand what it means to buy Bitcoin at the bottom? Let me tell you in detail below.

What does it mean to buy Bitcoin at the bottom?

Bitcoin bottom hunting refers to buying when the price drops to a level believed to be lower. This is the behavior of investors trying to buy the asset at the bottom. They hope to make a profit if prices rise in the future.

The assumption behind bargain hunting is that you can make a profit by buying an asset at a lower price and then selling it at a higher price when the price rebounds or rises. However, there are risks in buying the bottom, because the bottom is difficult to determine and market behavior is difficult to predict.

In the Bitcoin market, bottom hunting usually occurs after the price drops sharply, and investors regard this as a good buying opportunity. However, the extreme volatility of Bitcoin prices makes bargain hunting a strategy that requires careful analysis and risk management. Investors often use methods such as technical analysis, fundamental analysis and market sentiment to determine the best opportunity to buy stocks.

How to judge the timing of Bitcoin bargain hunting?

The timing of Bitcoin bargain hunting can be judged through the K-line chart and the market situation, mainly considering the following five aspects:

1. Deviation of performance indicators

Judgment of divergence of indicators At this time, you cannot just look at the deviation of one indicator. If multiple performance indicators show significant divergence from the mid- to long-term trend line at the same time, this may mean that the last decline on the new trend has been completed. Identifying changes in market conditions through changes in indicators can also reflect changes in long and short energy.

2. Infer from the magnitude of the decrease

In a continuous downward trend, it is generally difficult to judge whether the decline will be the last decline. This also needs to be based on the news and its technical aspects. infer. But we must not forget a true knowledge: if it rises for a long time, it will fall, and if it falls for a long time, it will rise.

3. Judgment based on market sentiment

When the price of Bitcoin fell for the last time, the previous currency price was in a long decline process. At this time, the market was occupied by the phenomenon of "ta". most. If the market sentiment is depressed at this time, the real low will be approaching and a market reversal is imminent.

4. The technical form falls below

When Bitcoin reaches the final drop, the technical form will fall below and fall rapidly. Various pivot points, key psychological levels, and technical bottoms will all occur, and the Bitcoin market reversal is just around the corner.

5. News inference

Information is also one of the important factors in responding to the bottoming out of Bitcoin price, and it mainly includes many contents. Some difficult problems that confuse the market need to be solved. The market is in the conjecture stage, and no conclusion has been made. It can be inferred through the cooperation of the news.

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