Many of us in the crypto space have been given a "reality check" with the "Market Pullback". After weeks of upward trajectory (bullish momentum) it feels like a punch in the gut to see the major cryptocurrencies drop (Bitcoin, Ethereum, and alts). Let's face it—I get it—pullbacks are part of this game. I've learned (sometimes the hard way) that markets can't go up forever, and fact, corrections are often entry opportunities for the people who can afford to wait.
Nevertheless, it's human nature to want to panic and sell or double down on your riskier bets. My game plan? To re-evaluate and re-assess my portfolio, tighten stop-loss positions (if needed), and not make any decisions based on raw emotion. Is this pullback a momentary blip in prices, or is it indicative of something more long-term and substantively problematic? Macro issues (ex. inflation data, interest rates, etc.) often play a role in guidance, and this is no less true in crypto. So keep your eyes and ears open.
While some traders consider pullbacks and sell-offs as a loss for the trade, I'm always trying to look at pullbacks as an opportunity to buy the dip if the fundamentals persist to still make sense. Crypto rewards the fanatics of resilience, while punishing the ignorant, or those that make foolish decisions. So my advice? Take a breath, stay grounded, and always remember: Do Your Own Research! (DYOR)
