How To Find And Trade Crypto Pullbacks In Uptrend (Buying Dips)?
šÆ How to Trade Pullbacks During a Crypto Uptrend (Buying the Dip Smartly)
Updated: January 2025
Catching a trend early is tough, but joining a strong one mid-run? Thatās strategy.
Even in a solid uptrend, crypto prices donāt just climb in a straight line. They pause, dip a little, and then push higher. These pullbacksāshort-term price dropsācan be perfect entry points if the bigger trend is still bullish. The same idea works for downtrends (for short sellers).
š Whatās an Uptrend?
When price forms Higher Highs (HH) and Higher Lows (HL).
Downtrend = Lower Highs (LH) and Lower Lows (LL).
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š Whatās a Pullback?
A temporary price dip during an ongoing uptrendācould last hours or days. Think of it like a ādiscountā before the next move up. Smart traders use pullbacks to buy low in a rising market.
But not all dips are buy signals. The key is spotting real pullbacks vs. full reversalsātechnical indicators help here.
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ā Simple Strategy Rules:
1. Screen for coins in an uptrend that pulled back in the last 7 days
2. Use charts to spot the nearest support level
3. Buy near support, not in no manās land
You can customize and save this setupāmake it fit your style.