I was going to write about a different story but then Bitcoin hit $5,000 and the sell off began which caused a downward trend for most cryptocurrencies. So I decided to post a timely video I saw on youtube from Chris Dunn about what to do in situations like this:
This video offers very sound advice on what to do in situations like today, so I am posting it in the hope that it receives the recognition it deserves.
I'm curious how we've entered a bear market when we had one selloff day after hitting a new all time high at a psychological barrier. I think the better expression to use is Correction. Just constructive food for debate.
This type of post may be made with good intentions, but do you have any analysis or opinion of your own as to why we'd enter a full on bear market, versus just some normal and healthy consolidation as profit takers exit on a national USA holiday weekend? The drop has only been for a day or so, and it happens all the time when there's a spike.
It's always good to plan an exit strategy or stop loss if you're a trader, but if you're a long term holder, any price dip could be exciting to those looking to enter Bitcoin or any cryptocurrency at a discount from the previous highs.
What do you think? Chris Dunn is an expert of course, but let's address a bear market when there is more evidence of one (which lasts weeks, months or years).
My personal opinion is that this will be a correction that will last for a few days. I then hope the market actually goes sideways for a few weeks to consolidate and then starts to move up again. I would be really worried about a large bear market between the 250 - 500 billion range if it continues to shoot up like it has.
If you haven't watched the video yet, Chris Dunn talks about each scenario.
Thanks. I hope there's a correction for a while to shake profit takers out and attract new investors for the next leg. To manage the account value swings, I just think about the units of tokens I have and focus on future value/utility. Fiat price today is simply the entry point for non-traders.
Yep, saw that video a while back and it's very helpful. Thanks for your reply.
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