Bitcoin Forum

It seems to me that while BTC clearly goes up over time, the drops seem much more steep eg x 2 or 3 than the rises almost always.

Why is this?

It seems the one predictable thing about BTC.

Nuke the whales.

Most assets trade like that. It's not particular to the BTC market. There's an old adage about it: "The market takes the stairs up and the elevator down."

Right, so for newbie traders this is an eye opener for them, FOMO'd and then got burned easily. So they can either stay and learn from this experience and continue their journey, so simply exit. But for those who have been in this market, it doesn't surprise them at all. It is how you react and take advantage of every spike and then buying in every dip, win-win situation.

Steeper drops are also opportunities to buy lower than usual. 8)


There's "someone good" up there who doesn't want to leave you behind. 8)


Then that's good. It's predictable, easier to trade/buy. 8)

More traders took advantage of the rising market trend, and daily traders broke down the silence after long bearish period. Opportunity was grabbed instantly and I guess those sellers contributed to large fluctuations lately that definitely made the price so volatile. Roller coaster ride was on it's way taking time to correct some price glitches.

Going up is building. Going down is running. Traditionally you can do that a whole lot faster. People run for the exits. They rarely run for the entrance. Much of the time they're waiting for someone else to set a direction.

Whales need new lambos...

It is because of the panic sellers, people are always on the fence about buying, when you buy you have to know it should be going up after you buy but when its going down you can sell and you know it will make it go down even more so you sell with more ease, so if its going down because of x reason then it goes down even more after panic sellers start to sell as well.

Bitcoin going down is quite easier compared to buying as well because when you need to buy then you need to find new money buying bitcoin but when you want to sell the orders are right there and you can just dump all bitcoin you want. Right now you need a billion dollars to increase the price by double but if you want to sell a billion dollars worth of bitcoin you can do it in half an hour in 10 different places easily. That is the reason why they are so different.

People buy too much bitcoin because they have heard some good news, they create high expectations that the price will increase a lot, but if it has any negative news it will be enough for people to panic and sell with losses. I myself at the beginning when I entered the world crypto sold as soon as I heard some bad news, because I entered panic and days later or weeks later I saw the price to recover. It took a long time for me to stop panicking.

It's always like this, the fall is faster  ;D

We can take this as advantage to sell and then rebuy, I'm trying this to accumulate more BTC in moments of volatility

Good for you if it works. I prefer to leverage long while momentum is strong and sell into strength instead of waiting for the massive dump to sell. The dumps (like yesterday) often happen so fast that they trap lots of buyers in losing positions. Most of these people will panic hold and end up selling lower rather than taking advantage and rebuying. It's just human nature.

It takes bitcoin about two weeks to recover from the last pull down and recover with again around $2800 and yesterday it lose around $2000 in just a day and that means it lose fast and find it hard to grow. The buying above $12000 is weak and something fundamentals need to happen in other for new investors with a huge pocket to enter into the market.

You ask it as if it's some kind of mystery on why Bitcoin does that in the market. Aren't you aware that Bitcoin since going up back above 10,000$ a lot of people's target price are already set in place for profit taking? In case you haven't figure it out already most cryptocurrencies aren't your normal asset that can go for a steady growth for about for years, most of the time its waves of upwards and downwards movement brought to either the buying and selling of people taking advantage of the market's movement. Even if it is the bear market you will see the same thing, nothing has really change except for it moving on a wider range.

Casual stuff to be seen on Bitcoin market.We can see random ranges neither on price increase or drops but mostly this

happens on dropping price.There's no surprise thing though yet this market had been unpredictable since from the beginning.
This is why I do make shorts whenever I do hit up some profit target range.

Instead of comparing the prices in short term range, just compare the price in long term range. You will see that we are actually in the green zone. It's like the price starts to rise 4x or 5x and then after the drop when compared to previous year prices, we can see that the price is still now up almost twice.
Yeah pattern is predictable and has been repeating since the beginning.

What the literal fuck are you talking about? this is an example that has been repeated several times since bitcoin started: bitcoin went 50x from early 2016 to end of 2017. FIFTY TIMES IN PRICE! Then it sank from $20k to $3k, a measly 6x loss from the top. People like you who have absolutely no idea how to calculate anything make me wonder how you manage to get out of bed each day without falling on your head and dying.

I'd attribute this to basic human psychology.

You see this across all markets, whether stock markets, property markets, etc. where the price of the asset may go on a multi-year bullish run, only to be met with some form of flash crash at one point or another. It's not limited to just BTC.

Traders within the market are more prone to panic when they see a sudden trend reversal from bullish to bearish, than the other way around. Especially when you factor in the skepticism that people have at the start of a bull market. i.e., if you follow the bubble graph, it's not until euphoria kicks in when people's fomo and greed outweighs any common sense.

TLDR; Do you panic more when your investment is shrinking, or is your propensity of buying more coins greater when your investment is on the up? Probably the former.

But in this situation did we see any bad news? As far as I see, no.
To be fair don't know why this happens always, maybe people try to sell as soon as they see rise and everyone follows this action. On another hand I look it positively, a given chance to buy bitcoin and see profit in near future because it always rises, sometimes slowly and sometimes takes a long time but in overall price rises and we see profit.
Let's see what will happen in near future, seems quit interesting whether price will rise and exceed 13K and higher or it will fall again.

Every market drops faster then it rises, so far as I can remember thats true of stocks and many types.   The biggest reason is probably from hot money or leveraged buys which find a return in a rising price but must sell and repay the borrowed funds if that trend is ever seriously threatened.

We havent come close to a proper sell off, its still within a daily trend of rises lasting months.   A proper reset is to lose the positives and then fell till support is found, not really not that so much as adjusted its gradient

I see not only Bitcoin is down, almost all coins experience the same thing in this week, I think the price of Bitcoin has got a real position, but in fact it actually dropped free.
But this does not affect investment people in the crypto business.
I will wait for a lower price to buy, if seen from the news now experts are predicting to guess the price of bitcoin which is actually unpredictable. Sure the bitcoin will rise again.

Love this.

Didn't even thought about that. But it could be applied. ;D
Well you had been a legendary Sir. I do think you had the experience with this kind of movement even from before.

Somehow I am getting used to it, sadly I ain't trading my Bitcoin but rather using another coin to be traded. I hope I have that strength to give it up that easily to buy and sell for profit. But I don't have that much courage.

My question too. Is there a group of large quantity holders out there who had been doing this manipulation. It will be difficult to find it out.

This isn't true at all. If it has been happen one time we shouldn't compare it will all run. But seems btc much volatility currently. That's why I do not like sudden pump, because it will dump suddenly and new investors will worry. In a result bitcoin would dump more. Slow growth to up trend always welcome to me because it will not dump hardly and it will increase confident if new investors.

The growth of bitcoin used to happen based on various factors, when it comes to the fall in value it most of the time gets into the usage relative factors, FUD and other forms of regulatory issues that cryptocurrency network experience with time. This at times make the market value of bitcoin drop faster than its level of growth. The same isn't the scenario of bitcoin price moves each and every time, whenever there is some drop in price.

You should know buy now.
The reason why it's like that is because of mostly stop losses set by people get triggered when the price even starts to drop slightly.
Once the stop losses are triggered, there will be a massive sell off with in a very short period ... That's why the price drop curves are so step.

https://talkimg.com/images/2023/05/14/blobd006dbc60c78bc8b.png

Yes, that is always the feeling and no one doesn't like to see price drop. Still we were in similar situations couple of times recently and by now no one should be surprised. Corrections are part of volatility process.
But we also had pretty sudden and fast pump which very often ends up in corrections that is why I prefere slow and steady rise. But there is no place for panic and selling.

What manipulation? I have seen a lot of people talk about manipulation, yet none of them can articulate what that manipulation exactly is they refer to.

The drops we have seen are pretty common. Most big stack holders that have way lower entry points are waiting for certain levels to be reached so they can sell and get back an amount they feel comfortable with. They tend to wait for higher levels because of the slippage that occurs. They factor in that in order to get x amount, the price has to be 10-20% higher because of how thin the books are.

It's easy for most people here to cash out their positions at exact price levels, but for whales looking to unload thousands of coins it's impossible.

Its not only bitcoin or crypto markets that crash faster than they rise, its almost all markets especially the stock markets.

Look at the stock market back in 2007-2008 during the recession, it took years for the markets to hit those highs and only took around 1.5 years for all the profits to vanish.

Markets goes up slower than they go down mostly due to fear. Basically when the market is up 5% everybody is happy, when the markets are down 20% or so, people panic and everybody wants to get out at the same time. So there is massive selling pressure that accelerates everyday and everytually there is a recession.

Then it hits a low and the cycle repeats. This is generally how the rich and other institutions make their millions. Off the traders who sell out of fear not to lose money.

it is only because we are still in early days of reversal out of the bear market. and we all know that people tend to get stuck in their old ways until they are forced to change. right now they are stuck in the bear market mentality so they panic sell quite faster than normal which is why we sometimes see big drops.

but as this mentality changes we no longer see those big drops like the 2018 drops that were coming slower while the 2017 RISES were coming much faster because by that time the mentality was the bull mode.

This time the correction comes too deep and makes the price drops too far, and we already saw the price does not increase in a few days ago until now. But I believe that in the end, the bitcoin price will start to increase back as usual although perhaps, we will see another down of the price again. But I am sure it will rise high later.

No one can predict what is happening in yesterday or this day, and I think this makes some traders panic to see the price drops too deep. But I hope that they can hold their feeling and not to sell their bitcoin because of fear, because that will makes the price will go down again.

That's called trading sometimes goes up sometimes down, cryptocurrency like Bitcoin is also experiencing the same thing.
* You remember in 2017 the time went up, and when the price of Bitcoin dropped to a drop of $ 3000, without stopping.
* You remember yesterday when mid-2019 when rising, who would have guessed.
In the world of investment, it is highly prioritized, patience, do not panic, for the future everything will improve, maybe this is an influence on the world which is currently struggling with the economy.

I believe price is being suppressed. It already passed a correction, but its not rising past 13k.

Maybe its the whales from the evil bitcoin SV cult. It is said they have a lot of money to suppress bitcoin.

that is an interesting theory but i don't think the possibility of it being the case we have these days is that high. we have not been above $10k price that long to now want to rise another 30 to 40% that easily without the day traders cashing out their profits. and the $13k level seems like a challenging resistance that is causing these follow up drops each time it is tested.
if we get stuck in here for another month or drop lower than $10k then i start worrying about manipulation.

It actually goes both ways, seen bitcoin rise more than 15 percent within 24 hrs but it is particular very painful to see your asset fall by the same margin the same time frame. As with all emerging assets class, more risk more reward certainly does apply to bitcoins. I am holding on tightly to my coin because in a few days time, we are likely to better prices

Your maths is really bad. For Bitcoin to drop to zero, it has to drop exactly the same proportion as it has risen, ie. 1x the "speed" of Bitcoin's rise.

Of course drops seem to be more painful than rises. You feel the pain of loss a lot more than you do the joy of gains. It's just human psychology and the way our brains work to process emotional effects of money. A lot of research into it. Helps explain why traders chase losses. Gamblers continually suffer from sunk loss psychology, etc.

Just one correction, fall from 20k to 3k wasn`t a straight line. As I remember, checking charts from that period can confirm that. Everything else you stated is true, when people trade too much, price will fluctuate, when you add high rollers who trade with huge amounts, price will go down/up very fast.
People will panic no matter what we say. We already seen huge rise this year, but this little drop affected people to think about the worst case scenario, again. It`s like that since I`m here, price was 200 dollars, can you imagine that? With every drop, people wrote about some doom, the best thing to do is to not pay attention.

I doubt it, or the effect was negligible. This is 100% normal price action. Aggravating for bulls because of the lack of bounces on the way down, but normal. We still only dropped 30% during this correction. Dropping 40% would be normal for Bitcoin if we compare to the 2017 bull market.

Bitcoin doesnt drop that harshly recently, not as percentage when we compare to the gains already.   Its just profit taking which is not that severe compared to a proper drop.

https://i.imgur.com/9hE3rq6.png

So I'm really looking to see if the daily bar is going to close sub 11,000 or not because that would at least give more possibility to the negative.   

Panic buy and panic sell always been happened on this market, but yeah the people will prepare to sell their coin when the price will be down. Disparate when they will buy it, he will use a lot of strategies to strengthen their sales, other than that for this time most people still have a doubt  that bitcoin price will touch another ATH or continue to increase, as you may know bitcoin price had decreased a lot since 2018 and have killed many investors. But it would be different when bitcoin price pass $20.00, I guess there will be many people who start to buy it and hold for long term investment.

The bull is doing very well this day just that whales are really manipulating the market to make more money from the market and there are notting the micro traders can do than to keep holding. The up and down of the market provide them the opportunity to buy low and sell high and keep doing this to fatting their pockets. I wish I have such large funds to be part of the market makers and the whales in the cryptocurrency market

the rise that your talking about is only small and its only a recovery for its drop and these were only happening this month or this year but at the past there are more drops than the rise  .

btc drops fast because people sells in a quicker fashion because that is the only reason on why they are here investing and scouting for the price  . they  need to act quick if not they will miss the oppurtunity  .

next block halving may seem close but in market trend terms it is far away. and as i have been saying all this year, we will continue to see a lot more price rises before we reach the state where there is a big jump in price because of the halving which also will occur at least 1 month before the actual date. i expect price to be closer to $20k by then and the halving to push it beyond the previous ATH and kick start the next bubble.

Yes, it's the fact that bitcoin value can't stay in the sky so if you want to make profit from it, follow the trend until it reach highest peak.
But if it's too late, you still can hold it for few months , years until it reach your expectation.

Remember that you're follow the trend not the trend following your need

That's the reality, it's like the aircraft in the sky. It cannot stay for a long in the sky, maybe beyond certain height it can stay for a longer time period. Here, if we're too late we miss the opportunity, so it is good to take your own time and decide what needs to be done to overcome the market fluctuations and experience some profit unlike the market trend.

Damn those whales are good.They just locked in a boatload of bagholders. Price is down almost 30% from $13xxx. More pain ahead. Wash, rinse and repeat.

I think people have a good point when they say it requires faster than it rises because we have usdt but we do not have btct type of thing, which means people can get out of bitcoin easier than they can get into bitcoin, for example I can sell my bitcoins and move to usdt instead of withdrawing all the way to my bank account whereas if I want to buy bitcoins then I have to put money from my bank account itself (unless I already have usdt which usually means I already once had bitcoin so it is zero-zero).

I feel like if you check the support walls and resistance walls the situation is same as well, there is bigger walls on resistance but there are smaller walls on support so it is easier to go back down whereas it is harder to go back up. It is my own thought of course, maybe I am very wrong who knows.

We know that everyone gets chance to have profit from crypto currency increases and falls so we only have to use this chance it is very important to buy some bitcoin at low price then we will have to hold because only with holding we can make profit. Those to lose patience and sell for panic they only get lose.. because huge things takes time to happen.

They're the master of manipulation, lol, that is why they are call whales. Anyways, we went < 5 digits but it seems that we are back again and could hit $11k anytime soon. So if they whales manipulated it and you are able to ride with them buy buying more at around $9200 then obviously you're already a winner at the current price, rinse and repeat.

 What truly occur on the present situation is about adjustment which ordinarily happen in crypto world. The market stage enduring high volatilization which likewise take as one of the reason of its snappy fall. What's more, ideally it will recoup soon.

This price pattern can be seen in almost every asset that has a limited supply.Real estate properties in some specific locations can also have the same market price patterns.
The FOMO hype is always building slowly,while the panic selling comes always faster and has an instant effect.

Slow climbs and fast steep falls are normal for stocks and for bitcoin. It's all as it should be here. It doesn't matter how fast it falls but that it always stops higher and forms a higher low on the charts every time it goes into a bear market cycle and forms a higher high in every bull cycle.

Bitcoin is a very healthy stock if you look at the chart from the last 10 years.

It depends on the momentum of bitcoin, if its uptrend then we can see a spike with the price and if there’s a panic, people will take profit as fast as they can. Bitcoin will go up on a long process, we have more time to accumulate. A slow pump is better than a fast pump and then drop unexpectedly and stay on that level.

   How is possible for someone to think that Bitcoin price drops faster, when in last 10 years Bitcoin raised 10000%? Where people see that fast drop, every time that
was only temporary, it takes time for the price to recover, but that happen eventually!
     Probably price changes and how people see that are matter of perspective. Some people can see whole picture, while others see just what they want to see. I`m the
one who see the whole picture, and what I see is that Bitcoin price is rising for the last 10 years and that rise will not stop!

Lol yet the market is still in bullishness so why bother about the dropping ?and don’t forget that we came from a $3,000 value and jumped to more than $10,000 still

Just stop Fud and we will be on the rise again mate

it is not only natural for bitcoin , take any traded asset and you will get same or similar patterns
the rise is a gradual build up , while the drops are usually panic sales or triggered by negative news
while human greed is a powerful emotion ( FOMO, buying,price goes up )  , fear is way more powerful ( panic , sell , price goes down )
but if you check the charts, bitcoin is increasing its price and is one of the best performing asset to invest in

You want to see what's "natural" for Bitcoin? Zoom out your chart to all-time view. See that it's going to 6 digits. Debating everyday about the price today will just confuse you. If you want to do something about it, then buy the dip and HODL. There's another opportunity coming to buy under $10,000 again. 8)

From my view the BTC price hovers in mid air so often, its like a Roadrunner cartoon.    We have left the uptrend, its gone sideways and we are still at 10,000 or so.   I wont be surprised if its risen on the day somehow today.

It does appear like it will fall from here but who knows

https://i.imgur.com/hRt2jEF.png


The only support I see now is the round number of 10k.   I should look harder as there must be other possibles but thats the one I think mostly catches market minds for a collective buy.    If we get past 10,400 it could take, if its failing to take 10,400 next time I look I will be more convinced it must go further down.   9,200 would be an old target to first visit

people seem to forget that part, not too long ago btc was trading at $3000+ but within few weeks look at the price now,  sometimes i wonder what exactly people want from btc, price goes up people question it's authenticity, price dip they also question why that happen ::)   Lol! too many trolls in the crypto community :-\

What you had posted makes no sense at all. If it was true, then Bitcoin could have gone down heavily instead of rising from $3,200 per coin to $10,000 per coin during the last 3 months. Also, one thing I would like to point out. During the current bull rally, the spikes were always very sharp and short-lived, and the drops were moderate and lengthier in duration. 

I have noticed that drops are bigger that increases as well.
In my opinion, this happens because many investors in the industry came in order to make profits and not because of the technological advancement that relies behind cryptocurrencies. Having said that, when they see a price drop the start selling immediately.

There is something that I have observed about the Bitcoin price, it always go to the other side where youtubers and crypto news speculated. At present, it might fall of the cliff and the closet range is $8500 and further to $7500. It is important to study the chart and do your own research about the price as you are going to be financially responsible for your decision.

It's a well known feature of most financial products.

People are by default optimistic but also very risk adverse; so the natural tendency for most financial instruments is to gradually increase in price,

while the drops, precipitated by fear and panic leading to irrational activity, are typically faster and more volatile...

As far as i understand OP, what he/she means is that BTC is way too fast to fall yet way too slow to grow. Indeed $10,000 is the stable price support at the moment but there are times that it goes down to $9.5K and then everyone thought that it might gonna fall back again to $6K or $8K, a lot of speculation discussion was happening during that time.

Please never try to describe Bitcoin as slow to grow, the rate it expands is bonkers at times.    However it does suffer these very harsh pullbacks also which in sum total is what stops it becoming too ridiculous on the upside.   People dont realise we cant and should not go upwards at that rate or it would cause problems, its counter intuitive but we need something closer to the slow average gain expressed in 200 day moving average or similar.

The OP is talking about speed and not magnitude, it is obvious that over the long term the price of bitcoin has an upwards trajectory, anyone that takes a look at the charts can understand this, what the OP is talking about is that a bull market can take a year to reach a price and then when the bears take control of the market a great deal of that progress is erased in weeks, and while the movements of bitcoin are way more pronounced than the movements in other markets this is nothing new since most markets show that behaviour.

You need to understand at first, how the price of Bitcoins rises up or down.
The basic things that make this happen is the trading volume.
When the marketcap of the coin increases then price increases,  and when it falls down,  price too falls.
Hope you get it.

Is not a new things buddy but it doesn't happen at all time though, but sometimes the way it move in an upward direction is sometimes faster than that of the downward moment. All these happen based on the market activities.

yes i think it's due to dumping from whales and panic sell there is no panic buy but there is panic sell and that says everything and don't forgot about selling volume

no I agree that it rise exponentially more over time but the rate of that rise is always slower than a rate of drop after that.