Why seasoned investors see today’s Bitcoin dips as rare buying opportunities and what that means for your crypto portfolio.
Bitcoin’s price swings often stir panic and excitement, but some of its most dramatic moments reveal valuable insights. In this article, you’ll discover the rare technical milestones Bitcoin recently hit, why top crypto experts suggest dollar cost averaging now, and how global shifts in finance and regulation shape Bitcoin’s future. We’ll break down why history’s biggest payoffs came from skepticism, what Wall Street’s role means for crypto volatility, and why patience and strategy still win in this market.
Understanding Bitcoin’s Rare Technical Signal: The 36 RSI Milestone
One striking event for Bitcoin investors recently is the appearance of a rare technical indicator called the RSI 36. The Relative Strength Index (RSI) measures price momentum on a scale from 0 to 100, with lower numbers signaling possible oversold conditions.
Historically, Bitcoin’s RSI has hit 36 just five times: during the bear markets of 2015, 2018, the 2020 crash, the 2022 bear market, and now again. Each time, these lows marked some of the best buying opportunities in Bitcoin’s history—for example, the 2020 crash led to strong gains later.
What does RSI 36 tell us today?
Those red dots signaling RSI 36 appear near Bitcoin’s price bottoms, not tops. This suggests the current dip isn’t bearish doom, but a potential “buy the dip” moment for informed investors.
Even respected voices like Lynn Alden recommend dollar cost averaging during these times. That means investing small amounts over time, taking advantage of lower prices while managing risk.
Answer Box: What is Bitcoin’s RSI 36 and why does it matter?
Bitcoin’s RSI 36 is a rare technical signal indicating the crypto is oversold, often appearing during major bear markets. Historically, RSI 36 spots have preceded significant Bitcoin price rallies, making it a key indicator for buying opportunities.
Crypto Adoption and the Reality of Being “Early”
Despite Bitcoin’s visibility, less than 7% of the world’s population owns cryptocurrency today. While the early adoption phase (when Bitcoin was under $1,000) is behind us, the market is still relatively nascent with plenty of room for growth.
Crypto’s growth isn’t driven by regulation or government approval but largely by price momentum. People don’t call friends about new rules—they call about rapidly rising prices. Unfortunately, many jump in during peaks and get burned. Long-term investors avoid that trap by dollar cost averaging and staying patient.
When No One Believes in Crypto, That’s When Rewards Are Greatest
The crypto market often looks bleak now, with many skeptical about Bitcoin’s prospects. This environment, marked by disbelief and risk aversion, historically precedes some of the biggest rewards.
Experienced investors know that when “no one wants to take risks on good assets,” value is building quietly. As one crypto strategist puts it, “This time will not be different.” Long-term belief and holding through cycles remains the winning mindset.
Why Bitcoin Remains Essential: Inflation, Governments, and Money Flows
Inflation is an undeniable, long-term economic force. Experts warn the government will never allow prolonged deflation—meaning your fiat dollars will lose value over time.
Bitcoin’s scarcity and fixed supply provide a hedge against inflation. This underpins the digital gold thesis, motivating investors to hold irrespective of short-term price action.
Additionally, global capital is shifting. Wealth is moving from the West to more stable and crypto-friendly regions like the UAE, Singapore, and Thailand. Notably, the UAE recently called Bitcoin a strategic financial asset—a strong sign of institutional acceptance supporting the crypto ecosystem’s next growth phase.
Wall Street’s Role and Why Interest Rate Changes May Not Matter
Expectations that U.S. Federal Reserve interest rate cuts will automatically boost Bitcoin are risky assumptions. After the last rate cut, crypto prices actually fell—highlighting that Wall Street actions and large liquidations often drive crypto’s short-term price moves more than central bank policies.
Market manipulation and big institutional players entering crypto introduce new volatility layers. A massive $19 billion liquidation event in October illustrated how Wall Street can shake sentiment harder than “Crypto Bros” ever could.
This volatility will likely continue, creating market cycles where retail investors get shaken out before big FOMO-driven rallies return.
How to Navigate This Market: Dollar Cost Average and Stay Educated
If you don’t have much Bitcoin yet, the current environment favors slow and steady accumulation. Consider spreading purchases over weeks or months at amounts you can afford without stress.
A 13-year Bitcoin veteran explains this approach helped him avoid liquidation, reduce emotional trading, and benefit fully from long-term gains.
Education matters. Understanding Bitcoin’s fundamentals, cycles, and risks enables better decisions than reacting to daily news or price spikes.
Data Callout:
Only about 7% of the global population owns crypto today, highlighting substantial growth potential for adoption despite Bitcoin’s decade-long history.
Risks: What Could Go Wrong?
- Market Manipulation: Wall Street involvement may cause unpredictable swings and heavy liquidations.
- Regulatory Uncertainty: Governments may impose regulations restricting crypto access or companies, impacting sentiment.
- Speculative Bubbles: Rapid price increases based on hype can lead to painful crashes.
- Macro Economic Shifts: Changes in inflation, interest rates, or geopolitical events could influence crypto demand dramatically.
- Over-leveraging: High leverage trading increases risks of forced liquidations in volatile conditions.
Stay cautious and only invest what you can afford to lose.
Actionable Summary
- Bitcoin’s RSI 36 level, seen only five times historically, signals potential long-term buying opportunities.
- Less than 7% of people own crypto, leaving room for continued adoption growth.
- The biggest crypto payoffs come during widespread skepticism and risk aversion.
- Inflation is likely to accelerate; Bitcoin offers protection via scarcity.
- Wall Street’s entrance creates volatility; rate cuts don’t guarantee price gains.
- Dollar cost average slowly, stay educated, and avoid emotional trading.
Ready to dive deeper? Get the full playbook with timely price alerts, risk management rules, and model portfolios in today’s Wolfy Wealth PRO brief.
FAQs
Q: What does the RSI indicator tell Bitcoin investors?
A: RSI measures price momentum. An RSI around 30–40 suggests Bitcoin may be oversold, creating potential buying opportunities.
Q: Why is dollar cost averaging recommended now?
A: It reduces risk by spreading purchases over time, allowing investors to capitalize on dips without guessing exact bottoms.
Q: How does inflation impact Bitcoin?
A: Inflation erodes fiat currency value over time. Bitcoin’s fixed supply provides a hedge, preserving purchasing power.
Q: What role does Wall Street play in Bitcoin price moves?
A: Institutional players can cause large liquidations and increased volatility, influencing short-term price swings more than news or rate changes.
Q: Is crypto adoption still growing?
A: Yes, with less than 7% global ownership, there’s significant potential for more people to enter the market as awareness increases.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Crypto investing involves risk and volatility. Do your own research and consult a professional before making investment decisions.
By Wolfy Wealth - Empowering crypto investors since 2016
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Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile
