Dip

What is a Dip?

In the context of cryptocurrency and financial markets, a dip refers to a short-term decrease in the price of an asset. It's often seen as a temporary setback in an otherwise upward trend, and some investors view it as an opportunity to buy at a lower price.

Key Aspects

1. Temporary Nature: Generally considered a short-term price decrease.

2. Buying Opportunity: Often viewed as a chance to purchase assets at a discount.

3. Market Sentiment: Can be caused by various factors, including news or market psychology.

4. Relative Concept: What constitutes a dip can vary based on the overall market trend.

5. Risk Factor: Not all dips recover; some may be the start of a longer downtrend.

Similar Terms

• BTFD: "Buy the F***ing Dip", an aggressive approach to purchasing during dips.

• Bear Trap: A false signal that a market trend is reversing from up to down.

• Volatility: The degree of variation in trading prices, often associated with dips.