In this sense, the way to deal with these bearish cycles is first of all to recognize that they are part of the life of the markets, that cryptocurrencies they also have to be understood as assets to be able to work in the long term. If we only see the history of cryptocurrencies, they have had bearish cycles, but we highlight two in particular, one between 2013 and 2015 where the price correction of bitcoin It was 80% and the bearish cycle lasted 410 days (being the dominant one it affects the cryptocurrency market in general) and between 2017 and 2019 the correction was 85% and the cycle lasted 364 days.
We are now going through a bear market that started when bitcoin reached its historical price of USD 69,000 in November 2021, today it is correcting 60% and we have been around 180 days. Expect to have about 100 days or so left if we go by the story of a bear market; today there is fear in general with a bitcoin at USD 30,000, when not long ago it was pure euphoria, take that into account.
The best way to be able to operate or act is not only to think that prices will always go up: always before a bearish cycle there is a bullish one. In addition, the flats in prices are getting higher. Sometimes, due to ignorance, it is often thought that the upward cycle is uninterrupted, so many people are left with their portfolio invested in a large portion in volatile cryptocurrencies and when the price corrects, they have no way of coping with that market drop and discontent is generated or a low performance.
It is advisable to be proactive in the long term and to buy intelligently and periodically, that is, to generate an investment portfolio in a balanced way with a moderate risk because, in general, if we only look at bitcoin, no one who has invested in bitcoin in an average of three years is in loss and as we mentioned before, it is the dominant technology, so its behavior is transferred to the rest of the cryptocurrencies. These tend to be a bit more volatile because they have lower capitalization and track record. So, the healthiest thing is to consider a bear market as an opportunity to buy good projects at low prices, but for that you have to know or provision for this type of situation and not respond as the vast majority of people who do not have the knowledge, the experience of having participated in other bearish cycles or making high-risk investments such as cryptocurrencies. In that sense, the secret is to be able to go through a bear market without great worries or without going to the extreme of thinking: “everything is over here”
Source: Ambito
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