Recalling useful 'Bitcoin bottom' advice
161 sats \ 4 comments \ @Bitman 14 Aug 2023 bitcoin
In November 2022, lots of people were waiting - to catch Bitcoin's bottom.
I was no different. I'm sure that I was minimally DCAing but looking for that holy grail - the bottom - to buy more.
Then, I heard a great piece of advice that made me stop waiting. It went something like this:
Right now, there's a very low price. Even if the price drops a further 5% it's not worth the wait as a 5% drop of that small amount is a tiny amount.
It really seemed to gel with me and, because of this, my wait was over. I was really happy that I heard it and still consider this as great Bitcoin wisdom and advice.
I'm pretty sure that I've got the pith of the advice right - I'm even fairly sure that it was a guest of Laura Shin on her channel who said it - but if someone can elaborate on this sage advice, it might help educate me and others further.
I guess 'bottoms' can be pretty fluid, subjective, so the advice will always be handy too.
Thanks.
write
preview
related posts
20 sats \ 2 replies \ @stooge 14 Aug 2023
A bottom is best determined if you are already heavily invested before the price crashes. You know the bottom is "in" when it has gone down so much that you are past being nauseated and your feeling are indifferent to the price and have absolutely no apatite to buy more.
That's the buy signal.
PS
Most of the time you won't have much cash to buy at that point. It takes many virtues to be in that position.
reply
0 sats \ 0 replies \ @ProofOfWorkFitness 14 Aug 2023
Sell your chairs and buy more bitcoin.
reply
0 sats \ 0 replies \ @Bitman OP 14 Aug 2023
I've always had the appetite to buy more. My appetite must be insatiable.
reply
10 sats \ 0 replies \ @Maximus 15 Aug 2023
Let’s say for argument’s sake BTC is at $10k and you are going to sell some at $100k, a 900% increase and a cool clean 10x 😎 A $100 bag becomes $1000 netting a tidy $900 profit.
Imagine that it first dips another 5% to $9.5k and you successfully snipe the very bottom instead of buying at $10k. Then your $100 bag will do a 10.52x before reaching $100k, a gain of 952% and a profit of $952.
So the question is, is that extra $52 worth the stress of trying to time the very bottom while risking missing out on the very real gains already on the table?
The answer really depends on the individual but I’d guess that most will be happy with the straight 10x.
Some will opt to split their buys up into smaller chunks to try to get some in at the very bottom, risking missing the bottom and buying some small amounts a bit higher up too. But on balance this will probably give the same net DCA as just buying at $10k and chilling.
TLDR: the advice is right for most people but does depend on how much upside you expect
reply