In these situations most Newbies become prey of FOMO and lose most of their capital. They think it has Hit an ATH and will go for a Pullback and they Short. But it continues to Rise higher.
FOMO will help you where the market continues to rise. But, I suggest to go calm and composed. Go DCA even around ATH.
DCA at regular interval will help newbies to be rich but need patience at least for more than 4 years.MORE IMPORTANTLY, you need to
be a long term holder to enjoy the maximum benefits of bitcoin market.
By considering bitcoin is capable of valuing 1 M to 10M USD, you are still in early stage of adaption. No need to short anywhere. If you target for short term profits, you may miss out. Better hodl for years to decades to life long. This is how you can extract the maximum benefits and your inherits also will get.
I want to know how to react to this market and what do Hodlers do in these situations.
Hodlers never react. They may sell bitcoin only for life's extreme needs.