When crypto takes a dive like this, many weak hands sell and dump their coin. Stop loss orders auto-hit, people panic, and the list goes on with people cashing out.
After reviewing my past experiences in crypto, these dives generally do not phase me too much. If I lose 50% of my holdings in the next month, I consider that normal for crypto. The reason I am willing to hold through such fast flash-dives is that the upside at the other end of every crash in crypto is so much larger than the loss.
A great example that happened to me this year was when I rode DASH from $100 back down to $50 within a few weeks. I was laughing the whole way down because I know the long-term value of Dash. Then I rode the roller coaster back up to $200 and today around $150.
I am not sure bitcoin will make it much below $2k this time, but the altcoins are taking a beating. Yet, the upside on many altcoins is greater than the gains bitcoin will ever see!!!
How are you riding out the declines?
Tips for people who panic during declines:
Focus on the potential underlying the technological advancement and adoption your coin has, because this is ultimately what drives its value long-term, so you will not feel crazy for holding in declines when fear says sell sell sell
Remember all the other dives, or if you do not have that experience, look at old charts of previous dives, and then look what happened after those
Some people walk away and forget about it, but that is only good to a point, you still want to be engaged with reviewing the fundamentals of your coin to make sure a good investment is still a good investment