When is a good opportunity to buy cryptocurrencies at the bottom?

When buying a cryptocurrency at the bottom, you need to comprehensively consider market panic, changes in trading volume, technical indicators, macroeconomic and industry trends, and make cautious decisions to increase the probability of success.

Mar 28, 2025 at 05:42 pm

The cryptocurrency market is changing, and the judgment of the timing of buying at the bottom has always troubled investors. When the price drops sharply, many people will be moved, wondering if they can take the opportunity to enter the market and make a big profit. But buying at the bottom is not easy. If you copy well, you may lose all your money. So, when is the best opportunity to buy cryptocurrencies at the bottom?

When the market is filled with panic, most investors sell their cryptocurrencies and the price falls sharply. This may be a signal to buy at the bottom. For example, when some major negative events impact the cryptocurrency market, such as cryptocurrency projects storm and sudden tightening of regulatory policies, the market will fall into extreme panic. Taking the 2022 LUNA/FTX burst incident as an example, investors' trust in cryptocurrencies has dropped to freezing point, and Bitcoin price has dropped sharply. However, this type of plunge caused by the problems of encryption technology itself often has a long recovery time and may take about a year and a half before it will rise again.

With the help of technical analysis tools, when some key technical indicators show that cryptocurrencies are in oversold state, it may also imply that the opportunity to buy at the bottom is coming. For example, the relative strength indicator (RSI), when the RSI value is below 30, it is usually considered oversold, which means that the cryptocurrency price may be oversold and there is a rebound demand. But it should be noted that technical indicators are not 100% accurate, and the oversold state may continue for a period of time, and even the price will continue to fall. Therefore, we cannot rely solely on technical indicators, but we also need to make comprehensive judgments based on other factors.