What kind of pullback in this bull market counts as healthy for BTC? What kind belongs to a bear market?
1. How many more pullbacks will occur in this bull market? Based on the history of each bull market, a pullback of 10% in one day like yesterday will at least happen 2-3 more times, but they all fall within a normal range. It is only during significant pullbacks that more new capital dares to enter the market; not everyone buys coins like MicroStrategy without looking at the price!
2. How much of a decline counts as a healthy pullback? I believe that a pullback of within 30% counts as healthy, increasing turnover and relieving the pressure in the market caused by profit-taking players, thus repairing various indicators. If the retracement exceeds 30%, for example, dropping directly from 100,000 to 70,000, do not hesitate, just sell everything. Regardless of whether the negative news is true or false, as long as it dares to drop, I dare to run. Even if it’s fake, the subsequent sell-off + the liquidation of large holders and institutions will create a real shift from bull to bear! Once it breaks down, it’s no longer an opportunity, it’s a trap! Therefore, we need to have reasonable leverage, leaving ourselves with space to add and establish positions, to cope with every major drop. When others are fearful, I am greedy; when the waves are high, I don’t need to go out to fish; I can even sell fish. $BTC $SOL