When the value of cryptos falls, many traders double down effectively strengthening their commitment to a course of action that is potentially risky because the prices are so low. As with the pattern demonstrated from this short market tale, here's to how you can capture a price swing or one large move. By this we can conclude that we need to be careful on our alt trades and need to be sure on accumulations backed by TA and FA studies. Where are we heading is the moment of truth from this article!
https://medium.com/mark-price/the-chop-c55567cb7d26 I don't think that a lot of traders actually double down, which is the rational thing to do if you believe in bitcoin's long term fundamentals and you see prices falling.
Instead, the wider markets, especially mainstream investors are more likely to panic dump in the face of a potential downturn in the market, which fuels the bear market even further, causing flash crashes as a result of long squeezes along with excess supply.
That's the reason why I tell people to dollar cost average in bear markets. Going against the crowd in these circumstances can certainly pay off.