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Buy The Dip (BTD) Meaning

“Buy the dip” is an investment strategy where traders purchase an asset after its price has declined, anticipating a rebound. Proponents believe that temporary sell‑offs can create opportunities to acquire quality assets at a discount, especially in markets with long‑term upward trends. The acronym BTD is common in crypto and stock trading communities.

The premise of buying the dip rests on the assumption that the underlying fundamentals have not deteriorated and that the price drop reflects short‑term volatility rather than a change in long‑term prospects. Successful dip buying requires careful analysis of market conditions, investor sentiment and support levels.

While BTD can enhance returns in bull markets, it also carries risks. Prices may continue to fall, turning a perceived bargain into a losing position. As with any investment strategy, discipline and risk management are essential.

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