- Digital Vault
- Posts
- “Buy the dip”? Only if you understand this first.
“Buy the dip”? Only if you understand this first.
And it definitely doesn’t work when a recession is around the corner.
Let’s make something real clear.
Everyone loves yelling:
“BUY THE DIP!”
“This is the chance of a lifetime!”
“You’ll regret not aping in!”
But here’s what no one tells you…
“Buying the dip” only works in UPTRENDS.
It doesn’t work in chop.
It doesn’t work in bear markets.
And it definitely doesn’t work when a recession is around the corner.
Let me explain.
📈 Not All Dips Are Created Equal
In an uptrend, dips are liquidity opportunities:
Smart money takes partial profits
Retail panics
Price retraces into structure
Then new capital enters and pushes it higher
So yes — you buy those dips.
Because structure holds.
Momentum returns.
You ride the wave back up.
But during a macro downtrend?
That’s when dips turn into death traps.
📉 Recession Dips = Slow Bleeds
Let’s be real:
When the recession hits, dips don’t bounce.
They accumulate pain.
Volume dries up
Bid walls disappear
Support zones fail
And coins just… bleed
You hold a bag thinking,
“It’s gotta bounce eventually…”
But it never does.
Because the dip keeps dipping.
🧠 Example: 2022 Altcoin Graveyard
Remember 2022?
LUNA dipped 50%... then went to $0
SOL dropped from $200 to $10
AVAX from $140 to $10
Meme coins from 100x dreams to -99% charts
Everyone kept yelling “buy the dip.”
But smart money?
They were watching macro.
They were reading liquidity.
They saw the Fed tightening, M2 contracting, stablecoins draining…
So they didn’t buy.
They waited. They watched. They survived.
🔑 Learn the Difference:
Here’s what I teach inside 9-5 Traders:
If the macro environment is expanding (like now), you look to buy pullbacks into structure
If the macro is contracting (like during recessions), you sit out or short the rally attempts
Simple rule of thumb:
✅ Uptrend dips = Opportunities
❌ Recession dips = Traps
👀 Where Are We Right Now?
We’re in an uptrend — for now.
BTC is above $98K.
ETH and alts are following.
Liquidity is rising.
Momentum is holding.
This is where “buy the dip” actually makes sense.
But when the macro shifts?
When the Fed caves, inflation flips, and liquidity tightens?
You stop buying dips.
You rotate to stables.
You protect capital.
Because the goal isn’t to “always buy.”
The goal is to survive long enough to win.
🎯 Want My Dip-Buying Playbook?
Inside 9-5 Traders, I don’t just say “buy” or “sell.”
I teach:
How to confirm trend strength
How to time entries with structure + momentum
How to identify when a dip is a trap — not a gift
👉 [Join 9-5 Traders Now]
Learn to play both sides of the cycle.
Because the dip is only a blessing if you know the environment.
This is how professionals trade.
This is how you stop being exit liquidity.
— Victor