If you have been around the cryptocurrency market for a while, you will know that asides from the cryptocurrency market generally being volatile, Bitcoin is a massively volatile asset. Being a cryptocurrency trader or investor, you should not be afraid of volatility; instead, you can try and work your way around and use it to your advantage. When we talk about volatility, we are referring to the downward movement of price and the upward movement of the price.
From the chart above, you will observe that we closed the daily candle yesterday above the 200-day moving average, and we also had a strong volume coming in. Although we had many panic sellers, we also had many people coming in to take advantage of the situation and buy the dip.
It will be good if the price continues to stay above the 200-day moving average, which is the bull market line. Things will be alright if we continue to close above the 200-day moving average, but it will be bearish for Bitcoin if we do not. If we fail to hold the 200-day moving average as support, it will create good buying opportunities for investors and traders.
Until we see Bitcoin close above the 100-day moving average and so on, we cannot say that the bulls are in charge of the market.
The dump, which occurred a few days ago, was recorded as the sixth worse Bitcoin correction of the past nine years. The only way one can survive in this market is to hodl. Volatility is natural, and it has to occur for us to achieve higher heights.
Although it was recorded as the sixth worse correction in the past nine years, it was only -54%. Bitcoin had a correction of -83% around December 2017; there was a massive bear market trend, and there were many cryptocurrency exchange hacks that period.
Another correction of -86.9% occurred when China banned Bitcoin back in 2013, and it was a massive bear market. The one that occurred in April 2013 was -82.6% after the first big push up for Bitcoin in the 2013 bull market. There were amazing corrections and dip-buying opportunities during the 2013 bull market.
Back in 2012, we had a 56% correction after the collapse of a Ponzi scheme. Despite these corrections, we have to admit that after these corrections occur, Bitcoin always bounces back better and stronger than before.
Understandably, buying the dip is not easy because of fear; you will begin to doubt yourself and Bitcoin. You will start to ask yourself what might happen if you eventually buy the dip and Bitcoin should crash for good.
People keep talking about Bitcoin and its volatility and how they have to dump it, but even when gold fell back in 2011, it never ceased to be a store of value. When compared to Bitcoin, Gold's volatility tends to last for larger timeframes, which could be for months or days, but Bitcoin does not last as long as that. Bitcoin being a 24-hour market makes things move faster.
