Why are price corrections very useful?

Even in a bull market, the price of cryptos is not always upwards. Instead there are always temporary price cuts called corrections. The table below shows the price corrections for Bitcoin during a bull markets until June 2019. The column "From" shows the price before the correction and in the column "To" the lowest price of the correction can be seen. There is absolutely no temporal or other connection between all these corrections. They come completely irregular and their height does not depend on the amount of previous corrections.

 

Therefore, the corrections are unpredictable in neither their timing nor their height. Anyone who speculates and sells or opens short positions plays roulette. So sales or shorts are strongly discouraged in a crypto bull market. Nevertheless, corrections in a bull market can be useful because can be profitably used without having to speculate in advance on their appearance. One can wait for the correction and as soon as the prices have fallen significantly (for example 10%), one can buy cheaper. If it then significantly falls again, so one can buy more and so on. All positions bought during a correction are significantly positive after the price recovers. So with corrections, one can buy cheap and make profit on price recovery.

It is even better if a coin is not dependent on such strong up and down movements and there is actually a chance if the coin is very widespread. Such a coin could become a new crypto of the future. It is an excellent project that already inspired over 9 million people to date and a large number of new people are added every day, who previously had nothing to do with cryptos. The reason for this is that everyone who takes part has no costs, but a great advantage. Such enthusiasm has never triggered crypto before. Read more here.

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