How To Buy Bitcoin And Remain Profitable Despite Pullbacks: A Trader's Strategy

Technical and on-chain analyst Ali Martinez shared a strategy for buying Bitcoin at regular intervals, regardless of potential downside price action.

What Happened: In a post on X (formerly Twitter) on Tuesday, Martinez said dollar-cost averaging (DCA) can be used as a disciplined and low-stress investment approach for Bitcoin. This strategy involves buying a fixed amount of Bitcoin at regular intervals, irrespective of the price. Traders can set a specific amount of money for periodic investments, such as weekly or monthly.

The term “cost-averaging” refers to reducing the impact of short-term market volatility on traders’ investments. By purchasing more Bitcoin when prices are low and less when prices are high, traders can average out the cost per Bitcoin.

Martinez sees four important steps for implementing this strategy:

• Budgeting
• Deciding on intervals
• Finding the right exchange
• Starting to stack sats (regular bank transfers to an app that automatically purchases Bitcoin).

Also Read: Bitcoin Rally ‘Is Over’: Crypto Trader Points To These ‘Sufficient Reasons’ Why Top Is In

Why It Matters: In the DCA strategy provided by Martinez, he suggests buying Bitcoin at each price point with a difference of $1,000.

• Buy 0.5 BTC at each price point starting from $65,130 all the way down to $62,130.
• Buy 0.65 BTC at each price point starting from $61,130 all the way down to $58,130.
• Buy 0.8 BTC at each price point starting from $57,130 all the way down to $54,130.
• Buy 0.95 BTC at each price point starting from $53,130 all the way down to $50,130.

In an earlier post on March 17, the analyst stated that he will hold his positions and is prepared for the bull cycle’s first 30% price correction. He also assumes that market makers will attempt to grab a huge liquidity pool between $50,000 and $49,000 before pushing the price to new highs.

As the crypto community eagerly awaits Bitcoin’s next price move, many notable traders and analysts foresee a short-term price drop, which could present a good buying opportunity for long-term investors.

Read Next: Bitcoin ‘Could Decline To $63,000,’ Says 10x Research Report, While Ethereum Faces Challenges

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