Market value showed the largest cryptocurrencies showing double-digit corrections on Thursday (26).
The sudden decline scared investors, but there are those who remain positive.
On Twitter, traders are taking advantage of the decline to buy more digital currency.
Early Cryptocurrency Black Friday?
The Altcoin Sherpa trader is one of those who takes advantage of “Black Friday” early on.
Through his Twitter profile, he said:
I buy some #Altcoins right now, scaling. NOT everything is included, they are long-term swing plays. I’m glad these DCAs are down, more downsides could come. You should be happy, cheaper $ ALTS IMO is a good thing. #YFI pic.twitter.com/2A7qsuZmdQ
– Altcoin Sherpa (@AltcoinSherpa) November 26, 2020
“YFI: Right now I’m buying some high heels, climbing. I’m not at all, these are long-term positions. I don’t deny it, more falls can happen. You should be happy, cheaper altons are a good thing in my opinion. “
CoinStat CEO Narek Gevorgyan has highlighted the recovery of Bitcoin after major accidents:
#Bitcoin the price has already earned more than $ 1,000 since today’s dip.
24-hour low: $ 16,334.
Current price: $ 17,340.
– Narek Gevorgyan (@narek_gevorgyan) November 26, 2020
“The price of Bitcoin has already earned $ 1,000 in today’s amendment.
Last 24-hour low: $ 16,334;
Current price: $ 17,340.
I am optimistic! ”
However, the rapid recovery did not last. At the time of writing, Bitcoin is priced at $ 16,619.48.
One of the traders known as UB on Twitter is committed to renewal. UB published a member of the famous group “The Haven”:
When it’s worth it, a lot of people are selling it in proportion.
The daily candle is ugly, but there hasn’t been much support set in the last 9 days or so.
We are finally in an area with a decent amount of support.
($ 15.6k – $ 16.1k) #Bitcoin
– UB (@CryptoUB) November 26, 2020
“I actually think a lot of people react too desperately to that correction.
The daily candle is certainly ugly, but there has been no help for the last 9 days.
In the end, we are in an area of decent support, between $ 15,600 and $ 16,100. “
It’s a good time to buy
Wellington Silva, a trader and founder of the WS Trader education project, the time has come to buy more BTC.
Not sure about potential Bitcoin recovery. However, he cites studies that made it possible to make a profit in such situations:
“Bitcoin was down more than 10%, breaking all lows in the last 8 days and closing below the 21-day moving average of the daily chart.”
Below you can see the daily chart with the observation made in Wellington:
He then explains how the trader wants to proceed in the following scenarios:
“I always like to see data rather than knowing what might or might not happen with Bitcoin. So I used a back test to test the historical statistics of this type of Bitcoin event using data from 2013 to 2020. ”
Wellington’s results were as follows:
“After this event, those who bought Bitcoins and the insured in more than 4 days achieved an average return of 9.28% above the invested capital. The investor would gain 65.78% of this type of event that occurred 43 times in Bitcoin. REMEMBER: Past results are not a guarantee of future results! “
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