Hi all,
So I am looking at the charts from the past days, and I want to share my thoughts with you and get some feedback. If you observe the chart below:
you'll notice that around 7 am on the 16th of Aug there was a big amount of coins bought, yet the price stayed the same. When the downward spike occurred on the 17th around 6 pm, the amount of coins bought and sold (the volume) was more or less equal, yet the price continued going down.
This then shows that sometimes the price is decoupled from the actual purchases.
So on the 16th, 7am you have people wanting to buy coins and they do, and at the same time other people provide the same amount of coins so there is never any scarcity on the market and the price remains the same.
On the 17th, you have people starting first to sell, driving the price down from the overflow of supply, and then people respond by buying, yet because the supply was already there, the price did not increase substantially.
Am I right in my reasoning? Is there something I'm missing?
Thanks for your feedback!