Let me start off by saying I hate corrections and I despise people posting "No Worries, it´s just a healthy correction."
If a coin is going up... why correct it?? Just do the frozen thingy and Let it Go, but NO!!

That is not how the digital asset market works Baby. Two steps forward, one step back. Make sure you don´t trip during that one step back because if you do you can start all over again.

And that start all over again is precisely why I do not like corrections.
Now I have been asking around, why do we need a correction....what´s so healthy about it. I mean it doesn´t have anything to do with vitamins??
Well for those of you, who like me do not see the need for 'healthy corrections', this is what I got.

"During a bullish trend to the upside, a coin tends to become overbought. Once a coin is clearly overbought the overbought indicators will start flashing and people stop buying. Well if people stop buying but keep selling....prices will drop. Now these prices need to drop, but remain above a good resistance level. If they drop enough, and the resistance level is holding, the overbought indicators change and the coin becomes good enough to buy once more. Allowing for even more money to come into the market in the wake of the correction.

So to add a little example BTC shot up nicely to 48K last week. Balanced around the 47K levels for a couple of days and all these wise guys were calling for a correction.

Why? 

Because BTC after that run was overbought and people were hesitant to buy back into the market at the current price of 47K. A 47K that seemed unable to break the 48K resistance, hence why buy if it can´t go up any further? I get it. 

So all investors were standing on the sideline watching and waiting for this 'healthy correction' and they got it:

There we went all the way down to 44.4K and that is why I really don´t like these corrections as I expected first of all a bit more resistance and secondly, the bottom to be around 45.1K. So breaking below 45K got me worried, now I don´t do leverage and stuff so I don´t get rekt. But I still have a very bad taste in my mouth from the downtrend over these last 4 months.

But the wise guys were right so far, we got the drop and shot back up within 24 hours as the overbought indicators faded. Now we should see another leg up today or tomorrow (written on 2nd of April), taking us back towards the real resistance at 48K. And testing if the newly added inflow of money provided enough momentum to break that resistance.

But even now that I understand the mechanics I still hate corrections.

Thanks for the read, don´t be a bullsmurf and hit that like button, and have a great time till we meet again.