When is a good opportunity to buy cryptocurrencies at the bottom?

When buying a cryptocurrency at the bottom, you need to comprehensively consider market panic, changes in trading volume, technical indicators, macroeconomic and industry trends, and make cautious decisions to increase the probability of success.

Mar 28, 2025 at 05:42 pm

The cryptocurrency market is changing, and the judgment of the timing of buying at the bottom has always troubled investors. When the price drops sharply, many people will be moved, wondering if they can take the opportunity to enter the market and make a big profit. But buying at the bottom is not easy. If you copy well, you may lose all your money. So, when is the best opportunity to buy cryptocurrencies at the bottom?

When the market is panic

When the market is filled with panic, most investors sell their cryptocurrencies and the price falls sharply. This may be a signal to buy at the bottom. For example, when some major negative events impact the cryptocurrency market, such as cryptocurrency projects storm and sudden tightening of regulatory policies, the market will fall into extreme panic. Taking the 2022 LUNA/FTX burst incident as an example, investors' trust in cryptocurrencies has dropped to freezing point, and Bitcoin price has dropped sharply. However, this type of plunge caused by the problems of encryption technology itself often has a long recovery time and may take about a year and a half before it will rise again.

Trading volumes have shrunk significantly and then rebounded significantly

As the price continues to fall, trading volume gradually shrinks, indicating that market participants are trading less enthusiastic and selling power is weakening. When trading volumes then suddenly rebound significantly, this may mean new funds are entering the market and the market trend may reverse. For example, when the Bitcoin market falls at a certain stage, the trading volume continues to be sluggish, but after a certain point in time, the trading volume suddenly increases and the price also shows signs of stabilization. This may be a good time to buy at the bottom. However, when judging trading volume signals, it is necessary to combine the overall market environment to eliminate trading volume fluctuations caused by short-term accidental factors.

Technical indicators show oversold status

With the help of technical analysis tools, when some key technical indicators show that cryptocurrencies are in oversold state, it may also imply that the opportunity to buy at the bottom is coming. For example, the relative strength indicator (RSI), when the RSI value is below 30, it is usually considered oversold, which means that the cryptocurrency price may be oversold and there is a rebound demand. But it should be noted that technical indicators are not 100% accurate, and the oversold state may continue for a period of time, and even the price will continue to fall. Therefore, we cannot rely solely on technical indicators, but we also need to make comprehensive judgments based on other factors.

The macroeconomic environment is improving and the industry trend is improving

The macroeconomic environment has a huge impact on the cryptocurrency market. As the global economy moves from recession to recovery, interest rates fall, and funds seek new investment channels, the cryptocurrency market may usher in inflows. At the same time, if the cryptocurrency industry itself continues to make positive progress, such as the promotion of new technology applications and the acceptance of cryptocurrency payments, it will also promote the upward development of the market. For example, as blockchain technology continues to expand in the application scenarios of finance, supply chain and other fields, the long-term trend of the cryptocurrency market is optimistic. During the market adjustment stage, if the macroeconomic environment also begins to improve, it is a good time to buy at the bottom.

Buying cryptocurrencies at the bottom requires comprehensive consideration of multiple factors, and you cannot enter the market in a hurry based on a single signal. We must conduct a comprehensive analysis of market panic, changes in trading volume, technical indicators, macroeconomic and industry trends, and make cautious decisions to increase the probability of successful buying at the bottom.

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