#CryptoMarketPullback

CryptoMarketPullback: Portfolio Strategy in a Leverage Flush Environment

The last 24 hours have been a textbook example of a leverage flush. As BTC dipped below the 76,000 level and ETH and SOL followed, volatility expanded sharply and forced liquidations accelerated the downside. In conditions like this, the real edge is not predicting the exact bottom, but managing exposure correctly while the market resets.

Holding Cash vs. Staying the Course
My approach during this type of pullback is selective, not emotional. I don’t see it as a binary choice between going fully to cash or blindly staying fully invested. Instead, I focus on reducing risk where conviction is weakest and preserving exposure where the long-term structure remains intact.

Holding cash right now is not a bearish statement, it’s a strategic one. Cash provides flexibility, optionality, and psychological clarity. In a high-volatility environment driven by forced liquidations rather than organic selling, price can overshoot fair value very quickly. Having dry powder allows me to respond to confirmed setups instead of reacting to noise.

That said, staying the course also makes sense for core positions that are aligned with higher-timeframe theses. If an asset is still holding key structural levels on the daily or weekly chart, I’m not rushing to exit just because lower timeframes look unstable. The mistake many traders make during leverage flushes is over-trading and abandoning plans mid-cycle.

How I Balance the Two
What I typically do is trim positions into weakness only if market structure breaks decisively. That trimmed capital moves into cash, not into another trade. At the same time, I avoid adding aggressively until volatility starts to compress and price action stabilizes around a clear support zone.

I also reduce leverage exposure to near zero during these phases. When the market is driven by liquidations, leverage works against you even if your directional bias is eventually correct. Survival and consistency matter more than catching the exact reversal candle.

Final Thoughts
In this environment, holding some cash is a position, not an admission of fear. Staying the course on high-conviction assets is also valid, as long as it’s backed by structure and risk management. For me, the priority is capital preservation first, opportunity second. Once the leverage is flushed and price begins to build a base, the market will offer clearer and safer entries.