Buying the Dip when the Market Settles Down
What does BTFD mean? To be blunt, it stands for Buy The F’N Dip! This a reference to buying the blood while still in an aggressive uptrend. This market tends to be stairs up and elevator down, meaning that it’s a slow and steady rise and then POOF – it’s all gone in seconds. Above is a classic example that literally just happened on the BTC M5 Chart.
As aggravating as this may be for long traders who can spend weeks in trades to see there PnL got back to breakeven in less than an hour, it’s all par for the course when we are talking about Bitcoin and the entire Crypto Market. That being said, it’s also a buying opportunity for longer term Swing-Trades. Nevermind the M5, that was just a visual example. Extrapolate that over something like the Daily and we have found three Coins that will look awfully good to buy on the dips once the market settles out a little bit.
Launched in 2011 by Pixowl, The Sandbox is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs), the Sandbox creates a decentralized platform for a thriving gaming community.
According to the official whitepaper, the Sandbox platform’s main mission is to introduce blockchain technology in mainstream gaming successfully. The platform focuses on facilitating a creative “play-to-earn” model, which allows users to be both creators and gamers simultaneously. The Sandbox employs the powers of blockchain technology by introducing the SAND utility token, which facilitates transactions on the platform. – CMC
SAND has had some explosive moves earlier this year with three separate runs of over 100%. The biggest was the first rally: a 7-day rally that went for a peak gain of 382%. This was followed by a 40% drop which then led to a 131% peak gain which took only 9 Days. An 18% pullback was a perfect dip buying opportunity before SAND once again shot up for 128% in only 4 Days. This last rise has lead to a 50% peak drop that was a result of last weekends bloodbath across the board.
We have a few areas we like as far as Support is concerned. The upward sloping trendline that we tested earlier today is the first line of defense but right after that is the previous high as well as the filling of the wick from last Saturday.
After that we have $3.45 and $2.21 as excellent areas to DCA for a longer term Swing.
Together with its in-house token FTM, Fantom aims to solve problems associated with smart-contract platforms, specifically transaction speed, which developers say they have reduced to under two seconds.
The Fantom Foundation, which oversees the Fantom product offering, was originally created in 2018, with the launch of OPERA, Fantom’s mainnet. – CMC
From August, 2021, FTM has had 4 big rallies. Three of those rallies went of rover 100% with the last one coming in at 83%. In total, FTM has increased from a low of $0.15 and and high of $3.48 or 2134% peak gain. However, FTM has dropped 66% to a low of $1.15 last weekend.
There was trendline support exactly where FTM dropped to last weekend but now it appears that FTM is looking to potentially retest that area, fill the wick or hold the current zone near $1.45. $0.91 – $0.99 looks to be a good area to accumulate if price is to drop in that area.
Avalanche is a layer one blockchain that functions as a platform for decentralized applications and custom blockchain networks. It is one of Ethereum’s rivals, aiming to unseat Ethereum as the most popular blockchain for smart contracts. It aims to do so by having a higher transaction output of up to 6,500 transactions per second while not compromising scalability.
This is made possible by Avalanche’s unique architecture. The Avalanche network consists of three individual blockchains: the X-Chain, C-Chain and P-Chain. Each chain has a distinct purpose, which is radically different from the approach Bitcoin and Ethereum use, namely having all nodes validate all transactions. Avalanche blockchains even use different consensus mechanisms based on their use cases.
After its mainnet launch in 2020, Avalanche has worked on developing its own ecosystem of DApps and DeFi. Different Ethereum-based projects such as SushiSwap and TrueUSD have integrated with Avalanche. Furthermore, the platform is constantly working on improving interoperability between its own ecosystem and Ethereum, like through the development of bridges. – CMC
Just like SAND and FTM, we have mentioned AVAX a lot over the months. Like SAND, AVAX also had three unique rallies with three separate pullbacks.
532% Up and then 45% Down
147% Up and then 36% Down
188% Up and currently 47% Down
Similar to FTM, AVAX did have support on the weekend drop. Also similar to FTM, AVAX did get a bounce and has been pushing back towards that wick ever since. If AVAX holds this area, it would likely all depend on Bitcoins behavior – just as everything currently is dependent on Bitcoin.
If AVAX is to fail the current Support, we have some areas we really like, starting with the $76 – $69 Zone that was essentially the breakout point of the final rally and even further down in the $60 – $55 Zone we have an area comprised of the very first rally high. As always – Time Will Tell.
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