Well, somehow I thought I wouldn't need further explanations but it seems that many people didn't understand what I meant. Okay, I will try to explain my point in detail below.
People often act without thinking twice, but this is not the case when prices have been low for nearly 3 months already. For example, you bought at $19k and you didn't sell at 15k, 12k, and so on, then selling at 5k and below is psychologically meaningless to you because you already accepted your loss. You have your capital halved and then halved again, and now you have like 25% left of it. To me, it makes no sense selling in these circumstances because it is unlikely that Bitcoin will fall substantially below relative to the loss you already suffered. Indeed, it can fall from 5k down to 1k, but the new loss will be pretty irrelevant to you psychologically because by that time you have already lost most of your capital anyway. In other words, it's no use crying over spilt milk.
People often act without thinking twice, but this is not the case when prices have been low for nearly 3 months already. For example, you bought at $19k and you didn't sell at 15k, 12k, and so on, then selling at 5k and below is psychologically meaningless to you because you already accepted your loss. You have your capital halved and then halved again, and now you have like 25% left of it. To me, it makes no sense selling in these circumstances because it is unlikely that Bitcoin will fall substantially below relative to the loss you already suffered. Indeed, it can fall from 5k down to 1k, but the new loss will be pretty irrelevant to you psychologically because by that time you have already lost most of your capital anyway. In other words, it's no use crying over spilt milk.
Interesting perspective, but there are plenty of reasons why people would want to cash out anyway. Let's not forget that Bitcoin only reached the $5k level around September a year ago, so chances are majority of people in Bitcoin bought below that level. They break even at different points, so you never really know when they spill their milk, and you never really know when they'd want to dump. I totally get your point though.
It would do everyone good to hope for the best but prepare for the worst. The reality is that Bitcoin is speculative, and could therefore dip anywhere.
