Is it the right time to buy the dip? Three strategies for investors with different styles

“Is now a good time to buy the dip?” — This is the most core question under the hot topic discussion at Gate Square on May 18. Faced with BTC dropping below 77k and 150k traders getting liquidated, everyone's capital size, risk preference, and operation cycle are different, so there is no “standard answer.” Therefore, I have organized three independent plans for investors with different styles; please match accordingly.

Strategy One: Long-term value investors (cycle over 1 year). For you, this decline is just a bump in the long journey. Historical data shows that buying in batches when BTC retraces 20%-30% from its all-time high, and holding for more than a year, has a success rate of over 80%. Recommendation: Divide your total planned investment into four parts. Buy the first part now (around 76k); if it drops to 72k, buy the second part; if it drops to 68k, buy the third part; keep the last part for extreme cases (such as dropping below 60k). Target assets: 70% BTC + 20% ETH + 10% your long-term favorite DeFi leaders (such as AAVE or UNI). Avoid trading contracts, avoid small-cap altcoins.

Strategy Two: Swing traders (cycle from 1 week to 3 months). Your task is to catch the rebound wave after this decline, not to find the absolute bottom. Recommendations: wait for two technical confirmation signals — first, the 4-hour closing price reclaims above 78k; second, the overall liquidation data shows a clear slowdown (hourly liquidation amount below $5 million). Once these two conditions are met, use 20% of your position to go long on BTC or ETH, with a take-profit target of 84k and a stop-loss at 74k. Also, monitor the SocialFi sector for assets with small declines and quick rebounds, using small positions to seek excess returns. Remember: swing trading, set proper take-profit and stop-loss, avoid stubbornly holding.

Strategy Three: Conservative / Cash is king (risk-averse). If you feel uneasy about the 150k liquidation figure and are uncertain about how geopolitical risks will evolve, then it’s perfectly fine not to buy the dip. Recommendations: put over 90% of your funds into stablecoin yield farming or low-risk grid strategies, with an annualized return of 5%-10% already quite good. The remaining 10% can participate in activities like Gate.io’s “Post with a topic to share and split $1,000 in rewards,” or learn new trading strategies. Wait for more confirmed signals, such as clarity in US-Israel tensions, BTC regaining 80k, and weekly candles closing positively, before considering entry. Missing the bottom doesn’t cost you money; chasing high and getting caught does.

No matter which plan you choose, remember one iron rule: never buy the dip just because “everyone else is doing it.” Your funds, your decisions, your responsibility. Whether this decline is panic or opportunity depends on your own plan and discipline, not anyone’s calls.