panic selling

[Theb]

The value of btc will drop if this happens like a regular stock market crash

 

Even bitcoin will drop for sure many of the members here would buy more of it, or it will be a huge volume of buyers of bitcoin will take that opportunity to buy lots of bitcoin. You know the basic rules in trading buy at small price,lol...

Panic selling always happen. Usually it starts when a person or group of persons shorted anything from one price at a big volume, from that point other people will start to think that there is something bad that happened and they will follow shorting the asset. It is a normal phenomenon that happens when people want to take profit because they think the price is high enough and then when the price starts to fall they will buy again at a discounted price.

[deisik]

The value of btc will drop if this happens like a regular stock market crash

 

Even bitcoin will drop for sure many of the members here would buy more of it, or it will be a huge volume of buyers of bitcoin will take that opportunity to buy lots of bitcoin. You know the basic rules in trading buy at small price,lol...

Panic selling always happen. Usually it starts when a person or group of persons shorted anything from one price at a big volume, from that point other people will start to think that there is something bad that happened and they will follow shorting the asset. It is a normal phenomenon that happens when people want to take profit because they think the price is high enough and then when the price starts to fall they will buy again at a discounted price

You would need to short a really desperate amount of Bitcoin to affect prices today

But that might still be a suicidal enterprise given the current trends (i.e. unrestricted runaway growth). Someone had actually tried that and ended up suffering massive losses in early January. Even the almighty and omnipotent Chinese government tried to "short" Bitcoin (and even twice at that) but still failed miserably in the end. There is a trading wisdom that says that you should never catch falling knives, and it seems to work in reverse order too, i.e. don't try to seize jumping daggers, either

[severaldetails]

Panic selling is a psychological process.
It usually affects the inexperienced with too high hopes.
I must admit that right now it's a relatively unfortunate time to start with bitcoin.
Right now after the big rise and the all time high, there is a chance that the price will drop a bit.
For newbies that might be frustrating, so I can imagine they start selling in bigger numbers to cut their losses.

[Doamader]

This happens all days, people trade all day, all crypto currencies, bitcoin always has the biggest ammount, even with some altcoins showing up like dash. Im pretty sure on the next days a dump will come at bitcoin like what happened ad January, because at the moment there arent any news to impact the bitcoin price, besides the wish of people to see bitcoin breaking walls.

[deisik]

Panic selling is a psychological process.
It usually affects the inexperienced with too high hopes.
I must admit that right now it's a relatively unfortunate time to start with bitcoin.
Right now after the big rise and the all time high, there is a chance that the price will drop a bit.
For newbies that might be frustrating, so I can imagine they start selling in bigger numbers to cut their losses

The emphasized part is also a psychological process

Just three (or so) months ago people were telling absolutely the same words, but the price had been almost half a thousand dollars lower than it is now (i.e. below 800 dollars per coin). Folks had been telling that Bitcoin was too expensive to buy it right now (i.e. then). And I told them basically the same, that the prices only looked high and if Bitcoin would spike a hundred dollars (in fact, I didn't expect it to hit the 1,200 mark that fast myself), these prices would look really cheap. So if Bitcoin goes over 2,000 dollars in a matter of a few months from now, today's prices will also start looking rather pale

[richardsNY]

Its normal especially to newbies in bitcoin and trading to panic when the price is going down. They tend to do that because they lack experience and enough knowledge about the nature of bitcoins and trading. But the longer they are in the business and their experience becomes wider then they will no longer panic and just do proper trading leaving strong emotion aside that impedes their judgment.

Well if you see most of the people who have invested are newbies itself. There are very less people who actually take the effort to
know more about the currency and how it works. Basically people see that bitcoin was 0.1$ some 7 years ago and now it is 900$ so
they invest in it. And when it reaches 1000$ and starts falling a bit they start selling.

If they only look at how the price has performed in last years, and take for granted that it will happen again, then they are just blindly buying (also known as gambling) themselves into Bitcoin. If you take into consideration that the price tanks heavily every now and then, then it's just a matter of time before these people get shaken out of the market with heavy losses as result. They either learn from it, or simply remove themselves entirely from investing in Bitcoin.

What makes you say that bitcoin is gonna disappoint it's investors. I agree there are ups and lows but if you see in long run it is profitable. The limited supply is one of the reason that makes me trust on the currency that it won't end up like gold. Even though most of the investor do blindly invest but I don't think they will ever regret about this in the future.

I nowhere stated that Bitcoin is going to disappoint investors. I was talking about how newbies get shaken out of the market as they completely ignore the recent market situation because they base their decisions on how the market has performed in the past. People (newbie or senior investor) if they blindly buy they need a lot of luck to leave with profits, or they (most likely) sell in panic due to their expectations not being met.

[varyspro]

This happens all days, people trade all day, all crypto currencies, bitcoin always has the biggest ammount, even with some altcoins showing up like dash. Im pretty sure on the next days a dump will come at bitcoin like what happened ad January, because at the moment there arent any news to impact the bitcoin price, besides the wish of people to see bitcoin breaking walls.

Yes, I also think that soon the price of Bitcoin decline slightly. That's when we all see a lot of hysterical people who will sell all of its assets

[Maslate]

This happens all days, people trade all day, all crypto currencies, bitcoin always has the biggest ammount, even with some altcoins showing up like dash. Im pretty sure on the next days a dump will come at bitcoin like what happened ad January, because at the moment there arent any news to impact the bitcoin price, besides the wish of people to see bitcoin breaking walls.

Yes, I also think that soon the price of Bitcoin decline slightly. That's when we all see a lot of hysterical people who will sell all of its assets

It's possible to decline because that is how the market behave, but the question is, does it cause a panic selling?
My opinion is not, people already given their trust with bitcoin and they know how strong it is, if the fact that it will fall we already expected it to rise again. Hence, if you sell and panic, you will not take the opportunity to grow your money.

[Yesterdam]

This happens all days, people trade all day, all crypto currencies, bitcoin always has the biggest ammount, even with some altcoins showing up like dash. Im pretty sure on the next days a dump will come at bitcoin like what happened ad January, because at the moment there arent any news to impact the bitcoin price, besides the wish of people to see bitcoin breaking walls.

Yes, I also think that soon the price of Bitcoin decline slightly. That's when we all see a lot of hysterical people who will sell all of its assets

It's possible to decline because that is how the market behave, but the question is, does it cause a panic selling?
My opinion is not, people already given their trust with bitcoin and they know how strong it is, if the fact that it will fall we already expected it to rise again. Hence, if you sell and panic, you will not take the opportunity to grow your money.

Many people know about bitcoin now. They want to buy some. So even if there is some decline, that will not be too deep.

[talkbitcoin]

This happens all days, people trade all day, all crypto currencies, bitcoin always has the biggest ammount, even with some altcoins showing up like dash. Im pretty sure on the next days a dump will come at bitcoin like what happened ad January, because at the moment there arent any news to impact the bitcoin price, besides the wish of people to see bitcoin breaking walls.

Yes, I also think that soon the price of Bitcoin decline slightly. That's when we all see a lot of hysterical people who will sell all of its assets

It's possible to decline because that is how the market behave, but the question is, does it cause a panic selling?
My opinion is not, people already given their trust with bitcoin and they know how strong it is, if the fact that it will fall we already expected it to rise again. Hence, if you sell and panic, you will not take the opportunity to grow your money.

every time there is a dip in price there is a panic selling at the same time without any exception. even if it is a small dip, it doesn't have to be massive or anything. just the price going down. it is because the market is still filled with weak hands and the orderbook is still not that thick to prevent these kinds of things.

but the number of panic sellers shrink as the time goes by. they become more experienced each time it happens and more people start to realize this and take advantage of the situation by buying when things like this happen!

[Tuyul Gupies]

What if somebody will make a huge dump and sell it all the way to earn some profits because of this rally in bitcoin,and someone sees it and do that same thing. Is there any effect on bitcoin when someone to this,?

Never panic in the trading of all there will be no time when prices fall too there are times when the price will go up again so do not ever panic in play bitcoin
enjoy

[agamasrori]

What if somebody will make a huge dump and sell it all the way to earn some profits because of this rally in bitcoin,and someone sees it and do that same thing. Is there any effect on bitcoin when someone to this,?

Never panic in the trading of all there will be no time when prices fall too there are times when the price will go up again so do not ever panic in play bitcoin
enjoy

fluctuations in the price of bitcoin practically very extreme. I agree with you, we better enjoy it. if the price of bitcoin down, we should have to buy bitcoin, not sell it. I think it is a good strategy.

[Dimelord]

What if somebody will make a huge dump and sell it all the way to earn some profits because of this rally in bitcoin,and someone sees it and do that same thing. Is there any effect on bitcoin when someone to this,?

Such dumps can be done only in altcoins in which marketcap is low.Bitcoin cannot be dumped easily as its market cap is very high.But the only people who could dump bitcoin now is chinese as they hold lots of bitcoins due to big mining farms.We just saw that effect two months before when chinese bitcoin holders sold their bitcoins due to PBOC actions.

[BingoDog]

Panic and other exaggerated emotions are not good for any business, especialy not the one with bitcoin and finances. You need to be cool. I know after such price pump many are expecting some big dump and they are prepared to sell but I don't think there is no reason for this, big dumps are not on the way.

[~Spawn~]

I think we are seeing a small correction, and I think it's necessary for Bitcoin to continue its rise. At the moment, the important thing is to be patient and not hurry.

[CyberKuro]

What if somebody will make a huge dump and sell it all the way to earn some profits because of this rally in bitcoin,and someone sees it and do that same thing. Is there any effect on bitcoin when someone to this,?

Never panic in the trading of all there will be no time when prices fall too there are times when the price will go up again so do not ever panic in play bitcoin
enjoy

fluctuations in the price of bitcoin practically very extreme. I agree with you, we better enjoy it. if the price of bitcoin down, we should have to buy bitcoin, not sell it. I think it is a good strategy.

But, you will feel better to get something than nothing, sell bitcoin and buy back at cheaper price.
Another inevitable thinking for everyone that has been through same situation before, or you will regret when the price fall down.
However, it's true in some time bitcoin will recover and start to climb up again, so I agree not to panic sell instead of be patient for a while.

[Vaccinus]

What if somebody will make a huge dump and sell it all the way to earn some profits because of this rally in bitcoin,and someone sees it and do that same thing. Is there any effect on bitcoin when someone to this,?

Never panic in the trading of all there will be no time when prices fall too there are times when the price will go up again so do not ever panic in play bitcoin
enjoy

it depend if the panic selling is legit because of a internal problem of bitcoin and not because of a bad news, if bitcoin go out with a flaw or whatever, following a panic selling might save your money otherwise not, it all depend on the condition

[Yakamoto]

What if somebody will make a huge dump and sell it all the way to earn some profits because of this rally in bitcoin,and someone sees it and do that same thing. Is there any effect on bitcoin when someone to this,?

Never panic in the trading of all there will be no time when prices fall too there are times when the price will go up again so do not ever panic in play bitcoin
enjoy

it depend if the panic selling is legit because of a internal problem of bitcoin and not because of a bad news, if bitcoin go out with a flaw or whatever, following a panic selling might save your money otherwise not, it all depend on the condition

It really depends whether or not selling is an advantageous action in most scenarios, since the price going down could allow for you to scoop up some extra if you sell high enough and buy in the lower end of the dip, but that's all timing-dependant and it really isn't something you can master or realistically determine without having some other contacts.

[deisik]

This happens all days, people trade all day, all crypto currencies, bitcoin always has the biggest ammount, even with some altcoins showing up like dash. Im pretty sure on the next days a dump will come at bitcoin like what happened ad January, because at the moment there arent any news to impact the bitcoin price, besides the wish of people to see bitcoin breaking walls.

Yes, I also think that soon the price of Bitcoin decline slightly. That's when we all see a lot of hysterical people who will sell all of its assets

It's possible to decline because that is how the market behave, but the question is, does it cause a panic selling?
My opinion is not, people already given their trust with bitcoin and they know how strong it is, if the fact that it will fall we already expected it to rise again. Hence, if you sell and panic, you will not take the opportunity to grow your money

That would largely depend on how fast the price would change. If goes down like a rock, we will see a lot of pain in the market and plenty of blood spilt all over the place. I don't think either that people somehow become more experienced or accustomed (as the other poster said), it is still the same fear and greed basically. Some markets have been there for centuries but does it mean that those two major price drivers are not there? They will always be present no matter how established a market might be

Since people can't change their "spots", so to speak

[ultimatesky]

What if somebody will make a huge dump and sell it all the way to earn some profits because of this rally in bitcoin,and someone sees it and do that same thing. Is there any effect on bitcoin when someone to this,?

Never panic in the trading of all there will be no time when prices fall too there are times when the price will go up again so do not ever panic in play bitcoin
enjoy

it depend if the panic selling is legit because of a internal problem of bitcoin and not because of a bad news, if bitcoin go out with a flaw or whatever, following a panic selling might save your money otherwise not, it all depend on the condition

Well let's state first that panic selling is normal human behaviour, and while most of the time it may be a bad decision to panic selling, having worked with stop loss orders saved me quite some money. Because you can enter at a lower level.