Regarding the pullbacks of Bitcoin in a bull market, this is a common phenomenon in market development:
In the past 2017, the Bitcoin market experienced a series of significant pullbacks, such as -33%, -40%, and -29%. However, after each pullback, the market demonstrated remarkable resilience, repeatedly setting new historical highs. Similarly, in 2020, the market also faced pullbacks of -20%, -31%, and -26%. But these adjustments did not change the overall trend of the bull market.
We must clarify that larger pullbacks do not indicate the arrival of a bear market. From a historical perspective, such fluctuations are merely a routine process of market self-adjustment and self-correction. Therefore, investors need not panic excessively or act blindly when faced with such pullbacks.
Staying calm and adhering to established investment strategies and risk management principles is key. When the market experiences fluctuations, trading according to the pre-set strategy direction is a guideline every investor should adhere to. This not only helps to reduce unnecessary losses but also allows for seizing profit opportunities when the market rebounds.
Pullbacks in the Bitcoin market are a normal phenomenon and do not signify the end of the market or the onset of a bear market. As long as we maintain rationality, stick to our strategies, and manage risks effectively, we can steadily progress in this market full of opportunities and challenges.
