BTC, do you have to buy the dip to make money?
Many brothers are asking: Does buying the dip in BTC really make more money than just 'buying randomly'?
Everyone believes that only by precisely buying the bottom of Bitcoin and selling at the peak can one achieve high returns.
But in fact, our research on power-law quantiles has overturned this perception: whether buying at support levels or positioning in the price median range, the annualized compound growth rate (CAGR) of Bitcoin shows negligible differences.
As of 2024, data shows that the CAGR for buying at the bottom is 52%, while the median entry is 53%, almost at the same level.
What is more worth noting for the brothers is that regardless of which trend line operation is followed, the long-term investment value of Bitcoin far exceeds that of traditional markets.
Even if investors only participate in trading at historical bottom ranges, their CAGR can still reach more than 7 times the expected return of the S&P 500 index.
To put it simply: in the crypto space, a long-term holding strategy may achieve more stable asset appreciation than pursuing perfect trading waves.