Bitcoin Forum

I have noticed BTC while overall goes up, in say a run up, it seems to drop really fast....why is this in your opinion?

Because ponzi scam

It caused by those people are trying to buy the rumour about the ETF decision. So, i guess this bullish trend can be turning into the Bull-trap anytime and every time. I need more speculation and analyzation about it. it seems like we are above the weak floor.

  EVERYONE is trying to get out of their position at the same time when the price begins to drop which exerts yuuuuge downward pressure on the value.

 The first time I put money on an exchange to buy Bitcoin, the price began to rise from ~$70 at 9 am and by 11am it was around $270 - scared the shif out of me so I went to bed ( I was working night shift anyway) and when I awoke in the afternoon, it was back down to around $90 again.
True story (though the numbers may not be exact).  The rise was actually much quicker than the drop though the whole episode took less than a day.

 

ha its doing that right now; 1215 down to 1195 and dropping in like 1 minute...

 Well, 1200 seems to be a resistance point - if it makes it through there, I don't think there is any resistance after that so... moon?

because on the rise, everybody is buying. the small traders, the whales,... everybody buys slowly and they try their best not to cause a spike with their buys so price goes up slowly.

but when there is a drop, it starts most of the times with a whale making a big dump to create panic, then they take the money they got and start orders at the bottom. at this time everybody starts panicking and dumping like idiots they are and the whales are sitting down there with their mouths open to eat all the cheap coins. then the rise starts again.

Because when people buy they are cautious - but when they are in profit they sell it quickly to lock it in. This happens on up trends.

Some people use Bots, and these bots are configured to sell if certain conditions are met. A sudden drop will trigger these bots to protect the investors profits, so this is why the price goes down quickly. This will happen every time, when we see a mini dump. The day traders and speculators will drop out first and then the hoarders will break the fall. ^smile^

Many people are just using Bitcoin to make some profits, and these mini pumps and dumps are the ideal environment for them to succeed.

Panic sell+day traders= sharp drops= more profit.

because people panic easier than FOMOing :D
when they see price drop started, they think this is the end of the world so they start dumping with great fear. but when price is rising, their Fear Of Missing Out is there but their panic of dump is still there too so they hesitate to buy hence slower rise vs sharp drop.

Bitcoin never appreciated 300% in 2 hours.

http://bitcoincharts.com/charts/chart.png?width=940&m=bitstampUSD&SubmitButton=Draw&r=&i=2-hour&c=1&s=2013-03-17&e=2013-04-1&Prev=&Next=&t=S&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=1&cv=0&ps=0&l=0&p=0&

This is how it broke $70 the first time.

http://bitcoincharts.com/charts/chart.png?width=940&m=bitstampUSD&SubmitButton=Draw&r=&i=Daily&c=1&s=2013-04-4&e=2013-08-01&Prev=&Next=&t=S&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=1&cv=0&ps=0&l=0&p=0&
And this is when it was breaking it a few more times.

There are actually people living on bitcoin trading/selling they cash out fiat and never buy back but as a natural system demand from new comers slowly kicks in and pushes the price up again, one important factor>hungry people need to eat :D

because selling you give more chance to buy back more coins, while buying not, besides hoping for a better shorting in the future

this make shorting more attractive always, over "longing", but it's not always like that, we had many big pump that surpassed the fast dump


are you sure about 2013? the pump made bitcoin $1200 in two weeks

http://bitcoincharts.com/charts/chart.png?width=940&m=bitstampUSD&SubmitButton=Draw&r=60&i=&c=1&s=2013-09-11&e=2014-03-01&Prev=&Next=&t=S&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=1&cv=0&ps=0&l=0&p=0&
Not even close. Max less than 50% - and that is on daily.

The higher the price climbs the weaker the hands become.
It's just because a lot of people try take profits almost at the same time.This causes those quick drops.
However we still close to the ATH of 1220 and can hold this range pretty good imo.
Wouldn't be surprised if we see another run up within the next days.

Because it takes time to convince enough fools to buy into it and only a second to dump to make profit on them and leave them hanging with losses.

looks like kwukduck is getting desperate again because he sold his coins too soon and price has gone up today :)

i mean look at it (https://bitcointalk.org/index.php?action=profile;u=654;sa=showPosts) after a couple of days of inactivity suddenly a barrage of comments in 15 minutes :D and the same thing he has been saying ever since 2010

 Yes 100% positive it was 2013!  My cash deposit into CaVirtex was confirmed April 10, 2013, 7:38 a.m.  It was my first attempt to buy BTC for the purchase of an ASIC Bitcoin miner.   The morning I tried (which I believe was the same morning I found out my cash deposit was confirmed), I placed buy orders up to $90 but I kept missing the price - thought I didn't know how an exchange worked - and then I sat and watched in horror until the price was $270!  I really thought I would never get any Bitcoin after seeing that. 
 The problem with looking at those historical graphs is that you only see the daily close (or maybe the daily average). On the day I'm speaking of, it went up and down within hours.  I'll see if I can find more detail for April 10th - CaVirtex is gone now - sold out another entity and now it's part of Kraken - so I'm not sure I can find any records of my attempts to buy.

 I lived it my friend.  It went 300 percent in one day and came back to earth again.  You're looking at historical charts that don't show any detail for the trading day - only daily closes.
What do you want an affidavit?

It's very easy to understand, btc grows naturally since its a deflationary currency, and sometimes people panic and decide to dump the coins. This means nothing, since the overall trend is positive, so you can thank those panic sellers since they are making you a discount for you to buy more cheap BTC.

i agree with most of what people said, but i would like to add that it is also because of the way exchanges and their orderbooks are. the resistances are big but not as big to prevent these types of drop. and as we have been seeing it jumps right back up but going down sometimes takes not so many coins.

When the price goes down, there is mostly panic on the market.
All those who sell, want to sell as much as they can in order to save the profit or cut the losses.
But when they buy, they often buy step by step.

You are wrong - it shows also intraday highs and lows - it is called wicks. Your have false memories my friend.

It might make 300 percent around the time when pizza was bought for 1200BTC - but ever since it broke $1 it never did something even close to that.

Every single stock does this.

May I HIGHLY recommend Boom bust Boom on Netflix.  A great moving explaining why this happens.

Yeah that it obvious if you see stock market also that's not how it works daily many people buy that share
but there's a very less increase in the price but when someone here's something bad happens to the company
the price instantly drops.
Same for bitcoin because if you see there are less bitcoin's which is bought daily so price decreases but if you
remember when the china government announced it is risky the price drop so much because the selling rate
was way more than the buying rate.

Come on. April 10 was the peak of the first bubble in 2013 - it is well remembered. It indeed dropped from 265 to about 100 in about 8 hours (still far from 260 to 70 in 2 hours) - but it started that day from above 220 and the day before from above 170 (maybe you confused 170 with 70 and days with hours?).

 I'm not going senile yet.  I lived it.  Too bad you missed it and have to rely on some flawed historical data.  I wish I had taken a screen shot or two... I was busy talking to a buddy on the phone about it as it went down.  

Gravity

And yet - have a look at this Cavirtex chart: https://bitcoincharts.com/charts/chart.png?width=940&m=virtexCAD&SubmitButton=Draw&r=60&i=2-hour&c=1&s=2013-04-01&e=2013-04-12&Prev=&Next=&t=S&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=1&cv=0&ps=0&l=0&p=0&
this is 10th of April 2013.

Have a read on https://en.wikipedia.org/wiki/False_memory

If we look more in deep, we can see that when Huobi and Okcoin stopped transactions, this caused panic in america's marketplace and people started massive selling in hope that bitcoin's price will be droped because of that factor but suddenly we saw absolutely other situation, price become stable.
I wanted to say this example to show you why is that all happening, also there are many factors and some people wants to control price.

 Heh!  Well now I don't even know for sure if I was being sexually abused at the time because I thought I was in the house alone.  Maybe I wasn't even trying to buy Bitcoins so I could order one of those BFL 50's?   OMG - I just looked in my computer room... well what I thought was my computer room... and I don't even have a computer in there!  Shit it's not even a computer room! It's a pantry. BFL doesn't exist, CaVirtex doesn't exist - it was all just a false memory.

  I guess the prosecution will have to invoke the false memory theory.  I'm sticking with my story.
 

I think that the price slowly appreciates but sharply drops is a good thing generally, better at least that the other way round.
I see it is the weight of buyers slowly pushing the price up over time, and a whale dumping to try to disturb the market, or take profit or buy back cheaper (I have never really understood why a whale would dump on the market)

The other way round would show to me that the masses want out, but the whales are propping up the price.

But maybe that is my rose tinted glasses talking!

Confirmed.

I think smart traders are spreading fake news saying its time to sell, to attract holders to sell and dump thier btc and it will create a panic ,and thats why bitcoin price goes down really fast.

I do not agree with you. BTC goes up and stays there for a while, Then it dips but not that much. Soon it rise again. This is been going on for few months and i think it means that people are not willing to dump the coins and they have more trust in bitcoins.

I think people are generally in rush when trading.
So bad weather(bad news) affect them very easily.

It's nothing strange. Generally speaking, it is harder to pump the price up than dump it later. There is psychological factor as well.
When price is dropping FUD is spreading, this cause that weak hands sell to minimize their loses.
Another element we had up until PBoC intervention was popularity of margin trading speculation in China.
With margin trading both profits and losses are multiplied but when decline is starting every margin trader sell like crazy.