So bitcoin is down $3,000 today and it seems to be getting worse. Do you think this will be like 2018 again when it went to $18,000 then tanked and went to as low as $5,000 in the next year or so? What would you do in a situation like this now or in the future?
It is simple, catch the falling coins and have the patience to hold for a few months, the market will recover and i am sure we have not seen the rally everyone is expecting. There were huge institutional investment that rallied the price and what do you think they will be doing, book the profit and then reinvest again and there is nothing to be surprised here.
This is not always a good idea. Trust me. I was around Dec 2017 and basically had a limit order at $10K which filled shortly after it peaked $20K. And from $10K it didn't come close to $20K again that year. And later eventually in the New Year it broke $10K and then you only had a few short hours to sell to get out before Nov 2018 crash to $3K. Most ended up bag holding and sold at either $6K or $3K.
So buying the dip isn't always a good idea. People sell when BTC goes up and buy it back maybe 5% cheaper. Which is great however not great if price eventually reverses. Because then instead of selling at a profit you can end up selling at a loss instead.