Bitcoin Forum

I am wondering what is the reason for the current dump? Seems Bitcoin dumped almost $3K within few hours. It's quite surprising just 2 hours back Michael Saylor announced (https://mobile.twitter.com/michael_saylor/status/1394625128257007618) about buying another additional 229 Bitcoins for MicroStrategy (https://www.microstrategy.com/en/investor-relations/financial-documents/microstrategy-acquires-additional-10m-in-bitcoin-at-average-price-of-43-663_05-18-2021). So total Bitcoin holding by MicroStrategy is 92,079 Bitcoins at an average price of $24,450 per bitcoin. But till now I visit Binance and seems Bitcoin continues dumping. First time I see a negative effect in Bitcoin after accumulating by institutional investors. Is there something else reason behind of recent dump?

It's just FUD and panic sellers, don't worry too much in this dip, as I already said, all fundamentals and adoption are still strong and untouched, this dip is caused by Elon and some panic sellers

But this recent dump is probably due to some news about China

Here: https://www.reuters.com/article/crypto-currency-china/update-1-china-bans-financial-payment-institutions-from-cryptocurrency-business-idUSL2N2N510T

I can't remember how many times I saw some news about "China bans BTC", China bans crypto, China bans miner...
The market will continue, BTC will continue

I think this is the time when a lot of people think similar things. A lot of people are putting the reason on this crash on one person, however, a drop by half is not new or unexpected. It happened at least twice in the last bull run too...

I think a lot of retail may be hoping for $36-30k and I'm not sure if they're going to miss the boat or not. (at this point it's a 20% PnL in btc).


The funnier part is, if we hit 33-29k, 350k is in sights - if a lot of people are trading based on technicals...

Pretty much every institution is giving up on bitcoin, that's why it's dumping. Saylor is the lone holdout, but even he'll bail once this gets far enough below $24k, which it 100% will. Bitcoin is dead. You're better off with cash in a low yield savings account at this point.

Bitcoin is having a strong support at $40000, this is what we should first talk about rather than saying it will crash to $24000. Likely the bear market might have started but there will really be a support at $40000 for now. If institutions can act like Michael Saylor, we should expect buy back and price increase.

$40k gets breached before next week.

It's obviously a FUD by those people who have a weak hand, continues panic selling is might the reason the price continues dumping.  I will not mention the influencer's name but most likely he was triggered to make FUD and the reason for this recent dump.  After he replied to the tweet of @CryptoWhale "Indeed" and his company didn't now accept Bitcoin, it might people start selling their Bitcoin and until now most of them are keep selling on it.

Additionally, it was mentioned above regarding China banning crypto businesses.  This is now a great example of how risk to the price if there's a big institutional investor and decided to sell their Bitcoin, it really has an effect on the Bitcoin price.

Whatever the reason is, at least we know how Bitcoin investment will work.  It will resist soon and might I saw the potential of having a new ATH after this recent dump.

That is what institutional investors want to make you think lol. It's called bluff, right?
If bitcoin were going to die, Elon Musk wouldn't have put 1.5$ billion of dollars into btc, Paypal wouldn't have adopted it as payment method and Mark Zuckerberg wouldn't be farming likes and attention on the internet exhibiting his goat named bitcoin. The biggest whales of the world are addicted to bitcoin, they just can't admit it in public, or there will be even less coins disponible for them.

I like what you’re doing sir..  You’re pretty much bringing back that 2013 - 2014 feelz for me when I first got involved with crypto and with this site.  Lolol. 

2021 is 2013 except where there is no epic recovery, only crashing.

Really hard to to tell the precise reason on why the price do continue to dump inspite of those positive news  and this is what makes even more harder to speculate or do make trades where
It doesnt really follow up TA's or does simply break out any analysis out there.This is the result when lots is already been affected with recent events where we should think that
there are several factors or reasons on why bitcoin price is dumping neither panic sellers, profit taking made by those big players or accumulators, profit taking by retail traders.
Im waiting for possibility of 30k+ price support since 44k support had been broken down.

There's another not so new news that has been brought by reuters and that probably have taken the spotlight again and brought fear to the market.

Yes, this could be the probable cause of the market dump today. I thought that it won't be pulled down under $43k but it just did again. As usual, when there's another FUD, that will cause the market to plummet again and this is not new anymore but sometimes it's tiring that these manipulators keep doing it under the use of the media.

Bitcoin is just testing its $42,000 support. It's still too early to have a full bullish reversal, the market would go sideways in this very narrow range for a few more days. The recent China FUD might have caused a drop, but it didn't put Bitcoin below the key support level, so it's already a good sign. Recovery will start soon, and we'll have to test the $50k resistance to continue the bull run.

Saylor buying 229 bitcoins won't stop a bitcoin free fall.  I know overall it's bullish to have these large holders holding but who's to say he doesn't part with some if we reach the 30s and get closer to his cost average (if it continues to go that way)

Of course it won't stop bitcoin from falling, as there could be thousands of newbies liquidating their assets because they are afraid. While strong hands keeps buying like Michael Saylor and others because they still believed that bitcoin is the best assets and the profits to be made in the future is huge.

The reason for the dump could be attributed to many factors, including Elon Musk negativity towards bitcoin and altcoin having its own bullrun.

There is just a bit of fatigue in the market imo with all the shenanigans that Musk is stirring up.

Investors have already priced in the fact that Microstrategy and other bitcoin maximalist institutions are going to continue to buy and hold BTC. As such, further news from these corporations about large purchases no longer has an effect on the market.

Besides, the bull market has been going on for so long that there has bound to be a correction coming one way or another. That's exactly what we're seeing now. Weak hands are going to be flushed out of the game once again and it's the perfect accumulation phase after a few more panic dumps.

And the dumping still continues, we are not close to $40k as I type this message.

Perhaps the positive news of Michael Saylor and MicroStrategy buying another tons of bitcoin is overshadowed by Elon and his tweet. Maybe the market is really tired at this point and wanted to see first if Elon are going to stop with his shilling against BTC.

So we will have to see next week, it's going to be critical as the price might hit $30k'ish or recover to at least a good support around $45k.

An aftershock of what Elon Musk did and there are still some panic sellers who are selling are 2 of the reasons why Bitcoin still dumping even though Micro accumulated more Bitcoin.

Bitcoin at $40,000 right  now and the near $30,000 is the strong support that I'm seeing base on the Fibonacci Trend line Extensions.
Another strong support that some saw is the 21 weekly EMA and now it has been broke and the next strong support is the 34 weekly MA which is right now at around $39,385. As of this moment it bounced at that level nicely so it might be a strong support right now but if we see Bitcoin's price below the 34 weekly EMA at the end of the week then the next support is the $30,000.

I don't think it's basically just about Elon Musk's tweets and all that, Elon could be able to cause a little scare in people and make quite a few dump their BTC, but this dump could well not be as a result of his latest tweet antagonizing Bitcoin, it's possible the dump could have happened if Elon didn't tweet about Bitcoin, it could prolly even have happened, if Elon tweeted something positive about Bitcoin; imo, it is what it is, as an investor, I'd simply take this to be one of those price corrections we experience during bull runs.
This is not true, except you do not care about the facts; there would be more influx of institutional investors as we keep on going, Fiat is still yet struggling to cope with inflation and an economic downturn, thus Bitcoin can hold the value of funds, not just for individuals, but corporations, thus, the more interest in the network.

People panic to see the bitcoin price is still going down so they sell some bitcoin to prevent the big loss and buy back again at a low price.
The retails company will use the time to buy bitcoin at a low price and I think they already make an order buy at a low price with a lot of money.
The price itself is still going down but we do not know how far the price will go down and hopefully, the price will not go below $40k.
But if that really happens, we can not do anything except prepare to buy at that low price.
But I guess the most reason why bitcoin continues dumping is that people are panic.

The most reasonable reason why Bitcoin price has dropped dramatically, there are indeed many Bitcoin holders who panic and end up selling
their Bitcoin. Even now that Bitcoin has dropped below the price of $ 40k, this will cause more and more people to panic. If it happens like this
there is nothing we can do, I prefer HODL Bitcoin that I have. But I also wouldn't blame people for cutting losses and buying Bitcoin at a low price.

look at the size of the buy compared to previously

Ask yourself why so little

Rofl.  Well then let me put on my hat and I’ll get back to work.  :D

https://i.imgur.com/zECifJQ.png

Seriously tho.  The market was so good until it wasn’t.  But the way it turned out with Elon Musk trolling and the way the maxis reacted was somewhat of a joke.  It was all playing into Elon Musk’s hands showing how much of a joke the space is.  No maturity at all after all these years.

i would love to see the faces of those altcoin bag holders who have been fooled by people like Elon Musk to bag hold some useless shitcoin that is dumping so much harder than bitcoin these days. they must be in a big loss already, Elon included if he did indeed bag held DOGESHIT coin.

for now it is time to start setting some buy orders like a ladder starting from current price and decrease in steps of $1000 or so depending on your preference.

MicroStrategy is indeed very famous for buying bitcoin when the price Dumps, yeah and that is very helpful,
because the price can be controlled better than the previous volatility, with companies buying Bitcoin,
the Bitcoin price will continue to experience more demand, because trust is what must we keep Bitcoin always experiencing mass adoption

Yesterday, bitcoin was down below $30k, but fortunately, the price can bounce and back to $30k and still increase and now, the price is back to $38k.
I hope people will not panic if the correction still happens this week and only search for the chance to buy more bitcoin if the price is down.
Yes, I agree that we need to hold bitcoin, even if the price is down, but we can buy bitcoin if the price reaches the bottom.
That will be their decision to cut losses and sell their bitcoin while they are expected to buy bitcoin at a low price.

Of course the only HODL we can do in a situation where the price of bitcoin continues to decline until now, there is a possibility that the decline will continue and I hope that doesn't happen.
I am sure many people are confused and worried about the current situation and what to do and there must be a sense of regret for not selling it when the price is still high, and only the best HODL can do it and buy gradually to minimize losses when the price continues to decline.

This time though, they didn't bought a lot of bitcoin to significantly divert the crashing prices but who knows what happens next, these meager amount might be able to stimulate the market and the investors that wants to get in might find that it is the right time to buy bitcoin.

I also hope that will not happen because it can attract more people to panic and sell their bitcoin instantly.
When they can calm down and do not panic, they will not feel confused or worried to see the price fluctuate because they still believe that Bitcoin will be back to the high price someday.
In this matter, HOLD will be the solution for us while we can have another way to buy bitcoin at a low price.
I am sure the company or institution or personal can use this time to buy more bitcoin before the price starts to increase.

I wouldn't say that it helped a lot because it was still on the millions that they have bought compared to what was sold in the market which is billions. At this point, what we can do is just hodl and stay strong because this is just a temporary thing that is testing every bitcoin stakeholder whether they have faith or not.

Yes, a hold will be better if you think you can not enter the market or doubt that the market can increase in a short time.
Yesterday, I tried to enter the market to buy and sell but it seems the market can not move well as I predicted.
After cash out, I decide not to enter the market and wait for a while because I feel that the market will go down, but I am hard to predict if that will go down for deep or just a correction.
If you have high skills in scalping trading, you can use this time to buy low and sell high, and you do not need to wait for more to take a bigger profit.
Just take profit when you can see it, not to miss the chance to make a profit.

I would say that the reason is that people value EM and Tesla far more than is the case with MicroStrategy - so even though this is the company that threw literally all the cards at BTC, the average Joe (especially the one outside the US) is not even aware that that company exists, so such good news is literally lost in everything that is bad - and the fact is that the media always emphasizes bad news because that is what people are interested in after all.

Also, the human mind takes small numbers literally as such, so 229 BTC is not something that would cause a positive wave - regardless of the fact that it is a larger amount of money. We seem to have reached a stage where it doesn’t matter how much someone bought, but who bought it - imagine the effect of someone posting the news that Amazon only bought 100 BTC - I guarantee a 10-15% jump in a couple of hours.

The current dump is because of FUDs. What's funny is that most of the people are blaming only Musk for it. Lol. Why blame him? Tesla hasn't sold the rest of the bitcoin they are holding. Blame those that are dumping theirs coins. Blame people that are spreading rumors and causing people to panic sell. We are hearing rumors about more strict regulation and policies that are about to be imposed (likely true). And then there is China (confused as usual) threatening to ban mining and trading.
Microstrategy is just taking advantage of everything. They know eventually it will stop and the market will recover.

And it's not over yet, far from. If these people are crying now, I don't know how they'll react when there're no tears left when they realise the crash for them has only just begun. Elon? Well, if he's bagholding since TikTok days then he's way more in profit and can certainly hold on for much longer.

Not to mention buying up more BTC while criticising it.

Limit order ladder to buy every dip? Me likey.

Yes its great that he is buying more and more however he should of bought all these bitcoins back in the $10-$25K area. Right now his average is like $25K. And the issue is that if bitcoin keeps going lower and lower, the share price of his stock will go down. The share holders will not like that.

If they can, and especially the people that lend him the money, they might get scared with all this "bitcoin not friendly to environment" and might get him to sell for break-even or a small loss rather than going down with the ship and being forced to liquidate BTC which is never a good thing.

Bitcoin movements are increasingly difficult to predict, and I also don't have scalping skills, so I choose to wait for the market to recover.
Now is not the right time to enter the market, because I doubt Bitcoin will soon increase or even can decrease in price. So I can only hold
the Bitcoin that I have and keep a portion of my trading capital in stablecoins. I actually really hope Bitcoin can come back to over $ 50k soon.
But do not know when this can happen.

Waiting for the market to recover will be good for you as I admitted that it is hard to analyze the market. Even if we try to scalping trade, that will not be easy to do.
I do not enter the market too often in a week because I feel hard to know the time to enter the market.
Maybe bitcoin will be like the current until the end of this month, but we can see a chance in the next month.
But many things can happen to bitcoin so we need to be patient.

If we are impatient and prone to panic in situations like now, it will only be detrimental to ourselves. There are many possibilities that can happen
to Bitcoin, therefore Bitcoin is called an investment that has a very high risk. There is nothing we can do but monitor Bitcoin's movements first,
but if we look at the current price of Bitcoin it still can't get past the $ 40k price. It's still very possible that the Bitcoin price will fall again,
therefore we do not need to rush into decisions in conditions like now. Be patient with our Bitcoin holding is the best thing to do. Although waiting
for Bitcoin to rise is tedious, but we inevitably have to do it. The process of making profit in Bitcoin is not as easy as imagined.

Indeed. We can do something else if we feel bored waiting for the bitcoin price increases.
We know that will need times before the price can bounce back to the higher price, so maybe we can relax for a while and enjoy our time by leaving the market.
I think we are now entering the sideway moment because the bitcoin price is not giving a significant move on the market.
But we must prepare for anything that can happen because bitcoin will move in anytime which we do not know when that will comes.