I sometimes wonder why we don't see the sell-off from another angle, which is okay I agree that people were selling and the market dumped but it is right to say on the other side there are people buying these BTC. If people are providing the liquidity, then it means there are real buyers, and sometimes the exchange is providing the liquidity, but that also means the exchange is buying not for themselves, but they will sell them to the buyers when they are in the market.Big exchanges are making millions in profit by buying low and selling high Binance owns most of the BTC now among other centralized exchanges and we can sell on Binance anytime, like even in the times of pandemic. Bitcoin has proved that if it's volatile it does not mean it will only dump just like any other alt it will not fail.
So this also explains that exchanges like big ones providing liquidity also trust the BTC and not just exchanges but almost every person who has spent some time in trading and has been involved with BTC knows that it can't dump always and it's not true that it won't recover after a dump.
BTC like you said will always recover and it can't dump forever those who have trust in BTC will buy BTC at its lowest they will buy it all and it will start pumping again. Demand and supply keeps the price up and down of BTC.To be fair it's not that easy to stay calm if you see your wealth go down to -50% overnight. Not to mention those market makers make profits even if the market is in a bear market, unlike retail traders. I think it's easier to detach our emotions if we're using money we can afford to lose or stop checking prices regularly (as long as we set a stop loss). It doesn't help that new traders sometimes buy at the top at the last bull run.
I can't agree more with you. I really won't see my portfolio down to -50% just overnight, and speaking of market makers and short traders, they will always be making a profit as the market has two cycles bear and bullish, and when bullish will end the bearish will start. When I was a newbie, I lost $5, and it was a lot for me. Then I lost another $5, and then I started again and made $15 to $19 in a few days. Then I lost it all.BTC like you said will always recover and it can't dump forever those who have trust in BTC will buy BTC at its lowest they will buy it all and it will start pumping again. Demand and supply keeps the price up and down of BTC.To be fair it's not that easy to stay calm if you see your wealth go down to -50% overnight. Not to mention those market makers make profits even if the market is in a bear market, unlike retail traders. I think it's easier to detach our emotions if we're using money we can afford to lose or stop checking prices regularly (as long as we set a stop loss). It doesn't help that new traders sometimes buy at the top at the last bull run.