Even in the face of a $26bn loss of market cap in 24 hours, there’s always a bright side to look on. Google searches for ‘buy the dip’ have just gone through the roof.
‘Buy the Dip’ Google Searches Skyrocket
Stock markets are in freefall as both London and Frankfurt opened 8% lower today. Oil markets have seen their largest single-day decline in three decades. And the cryptocurrency industry has seen a $26bn loss in 24 hours.
There is one thing that’s going up sharply though–and that’s the number of people searching for ‘buy the dip’ on Google. In fact, if you look back over the last five years, you’ll see a massive pique of interest shooting up in a straight line amind the global carnage.
Just as a refresher, ‘buy the dip’ is a typical pro tip that means purchasing an asset after a sharp price decline. However, how to know exactly when the dip will bottom out is another question entirely.
Many traders call ‘buy the dip’ when they believe that the underlying asset is in a strong long-term uptrend. That seems to be anything but the case when it comes to global stock markets.
Most analysts believe that the worst is yet to come as the combination of coronavirus fears and an inflated bubble cause deeper losses. However, that shouldn’t be the case with Bitcoin.
With the Bitcoin Halving approaching, many analysts have already confirmed that the number-one cryptocurrency is already firmly back in a bull market.
Moreover, some traders using technical analysis have pointed out that cryptocurrency prices are getting ready for their “next big mark-up.” Bitcoin Jack commented on March 5:
Buy the dip on everything in the next 2 weeks
If BTC price is indeed set to see massive percentage gains later this year and into 2021, it would make sense for those than can to buy the dip… That said, whether we’ve seen the sharpest “dip” already is still really anybody’s guess.