PRO | Are You Ready For A 30% Pullback?

We're going to dive right in with a burning question that you should actively be thinking about. 

Are you prepared for a 30% pullback? What about a 50% pullback? Or even a 90% pullback?

Think about what that means for a second. 💭

If you currently have $100k invested in crypto, your balance would drop to $70k, $50k or even $10k.

Are you ready for that? Because it will 100% happen.

How do we know that?

Because in the 2016-2017 bull cycle, Bitcoin experienced a 20%+ pullback a whopping 12 times.

In the 2020-2021 bull market, it happened 9 times. 

And, in case you haven’t noticed (or you just entered the crypto space), it’s already happened 4 times during the current bull market.

And by the way, this doesn’t even include the biggest pullbacks of them all, which occur at the end of each bull cycle. In Bitcoin we’ve seen drawdowns of 87%, 84% and 78%...

If that’s not bad enough, the numbers and charts above are only tracking Bitcoin, the most “stable” crypto we have today. 

You don’t even want to know what the pullbacks are like for the smaller market cap tokens. 😬

Welcome to crypto my friends. 🫡

In today’s PRO report we’re going to face our fears and dive into these pullbacks and figure out how we can use them to our advantage. Putting in the work now will help you when the inevitable happens. 

Pullbacks of this size are never easy to stomach. It’s the reason why so many retail investors and new entrants into crypto lose money in a bull market.

But if you know what to expect and what to do when they happen, you can set yourself up for massive success during crypto bull markets (...and limit your losses during the bear markets).

You can also use pullbacks to gauge where we are in the overall cycle, allowing them to actually help you make better investment decisions.

Let’s start with understanding the anatomy of the pullbacks within each cycle and then we’ll move into understanding why they happen and what you can do about it.

BREAKING DOWN PULLBACKS WITHIN CRYPTO CYCLES 📉

When studying these pullbacks, there are a few things to consider:

1. The severity of the pullback.

2. The time it takes for the pullback to complete and reach its low.

3. The time it takes for the pullback to recover back to new highs.

4. The time between pullbacks.

The anatomy of pullbacks can help you to understand where you are in the cycle. But moreso, understanding pullbacks will help you to manage your emotions and prevent you from making mistakes. 

This is something we talked about in more detail in our 5 Best Tips For The Crypto Bull Market Report.

Let’s get started by examining Bitcoin in its first mainstream bull cycle from 2015 to 2017. There were so many significant pullbacks we had to zoom in and split the cycle into 2 charts.

The first chart below shows 5 pullbacks larger than 24% in a 2-year span, starting from the bottom of the cycle in January 2015, until the end of 2016.

In the final year of the bull market (2017) we saw another 7 pullbacks above 24%, before the beginning of the biggest pullback into the bear market of 85%.

To better analyze the date, we’ve created a table breaking down the severity of each pullback, the number of days to reach the low, the number of days to reach the high from the start of the pullback and the number of days between the previous pullback, from low to the start of the next pullback.