In the Crypto Assets market, accurately distinguishing between 'Rebound' and 'buy the dip' is crucial for investors. The market downtrend usually presents a stair-step characteristic: decline, consolidation, decline again, consolidation again, occasionally accompanied by sharp Fluctuation. This pattern may last for several weeks or months until a true bottom is formed.



Currently, we are clearly in a downtrend. The real 'buy the dip' should occur in a relatively bottom area, requiring at least an H4 level (about 3-4 days) upward trend. Before that, any upward movement can only be seen as a corrective rebound in the falling process.

To confirm the end of the short-term fall, it is first necessary to break through the H1 level bearish order block (OB), which is around the 1093 position. Only by breaking through this level can it be considered that the short-term decline has come to a halt, followed by a possible test of the 115-116 area.

Understanding the difference between Rebound and buy the dip is crucial for investment strategies. A Rebound is usually a speculation on the market bottom, which carries higher risks and is suitable for light positions to test or hedge existing short positions. On the other hand, buy the dip occurs after confirming that the downtrend has ended, when one starts to position for the next wave of increase. At this point, the bottom is relatively clear, allowing for reasonable stop-loss levels and using normal position sizes for operations.

In the current market environment, investors should remain vigilant, closely monitor market signals, and wait for a true bottom to form. Entering the market too early may face the risk of continued fall, while waiting for confirmation signals may result in missing the best entry opportunity. Therefore, balancing risks and opportunities, combining technical analysis and market sentiment, is crucial for making informed investment decisions.
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 4
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)