You are right we have seen big dump and still in bearish as Bitcoin cross 40k last night but again now it is below 40k and hopfully market will go bullish in next few weeks but need some good news too.
this is the period where the correction is happening. Many people are selling their assets because the prices are quite high compared to the beginning of the year. however, I think currently the price has stabilized after dropping from $60k. but still the potential for dumps is still there, so keep yourself prepared for it. Personally, I prefer to collect assets and take advantage of these times.
I would say that the selling pressure is still quite significant, but it has calmed down a little bit compared to a few weeks ago. As for being prepared, you should be prepared for a dump nonstop no matter what asset you hold. If you look at the subprime crisis from 2007, they all got caught on the wrong foot, at least the smaller guys. The big ones saw it coming as they understand the markets better often times, that is why studying these events is quite a good way to get an understanding for crashing markets and how that can work out.