Market Panic can drive BTC prices Lower

[lionheart78]

the market is too influenced by some of the behavior of traders who sell bitcoin in number very much.
they scare others and advised to sell bitcoin at that time. whereas if we are more patient we could get better results.

There are always sheeples in Bitcoin economy.  If they saw some huge volume is selling, they also sell theirs making the volume more bigger and then suffer a crash.  And when people are buying and saw that the price is rising they will have this FOMO and buy bitcoin making it form a bubble driving bitcoin price goes up rapidly.  This is the normal flow of market.   And yes Market Panic is always dangerous because it can get the price lower creating more panic until it won't go down anymore.  And left are those who are brilliantly trading taking advantage of this panic selling.

[richardsNY]

I agree that many users have paniced recently and that their behaviour could influence the market. But it seems that this panic has stopped a bit and that their overall share in the market behaviour is not that big they could influence it significantly. But I'm a little afraid how big players on the market will behave in the next period, that could be crucial.

That's the whole point, we don't know what they plan to do. That's why you should be preparing for whatever happens in the way that you have enough coins for when the price goes up, and enough fiat for when the price goes down. If that's all set up well, then you're ready for whatever is going to happen. For now I don't expect much difference with how the price has behaving last days as the market seems calm now. I like this "stability".

[burner2014]

I agree that many users have paniced recently and that their behaviour could influence the market. But it seems that this panic has stopped a bit and that their overall share in the market behaviour is not that big they could influence it significantly. But I'm a little afraid how big players on the market will behave in the next period, that could be crucial.

That's the whole point, we don't know what they plan to do. That's why you should be preparing for whatever happens in the way that you have enough coins for when the price goes up, and enough fiat for when the price goes down. If that's all set up well, then you're ready for whatever is going to happen. For now I don't expect much difference with how the price has behaving last days as the market seems calm now. I like this "stability".

It's stability price now indicates only 1 thing that the bitcion is as stable as we expect for, yes, there are lots of btc user who panicly sells bitcoin when price is rises but a lot of investors out there who are just waiting for the price to go down and buy it. And now the flow is good to see and is stable as compare to other year.

[iram3130]

Japan's accepting Bitcoin as legal tender is a great step in the Bitcoin market. But it is true that due to the panic the rate of Bitcoin will be fluctuating more than normal.

[virasog]

the market is too influenced by some of the behavior of traders who sell bitcoin in number very much.
they scare others and advised to sell bitcoin at that time. whereas if we are more patient we could get better results.

This makes sense. We should be patience of the rising value of it, because when we sell the bitcoin the demand goes down and the people behind bitcoin will make it more lower the value or price of it. So let us think wise on making this thing to happen, we are the one who is truly affected by this scenario.

[Sahyadri]

I have made most of my money on the fear of others. It really is my main strategy. Buy when there is "blood in the streets", sell when everyone is celebrating a rally.  

http://www.investopedia.com/articles/financial-theory/08/contrarian-investing.asp

I buy low and stay invested, keep buying whatever I can on every significant fall. BTC has a solid foundation and long term prospects are good. My volumes are low though, due to lac of capital at the moment.

[TastyChillySauce00]

Japan's accepting Bitcoin as legal tender is a great step in the Bitcoin market. But it is true that due to the panic the rate of Bitcoin will be fluctuating more than normal.

It seems that the news about japan accepting bitcoin as legal tender doesn't spread that much thus people don't get informed about it and not really affecting the market that much. Although we can't expect anything from this news and it's just a good news about bitcoin. And the panic selling was actually a cut lose which were done by so many traders and always occur in every significant price decrease, nothing new here.

[mkmdoc]

I know we are currently seeing the fall of  coin prices, and many of us may think to get out while the getting is good. Well if you need the money, I guess that is understandable. However if your in it for the investment, and you can hold your ancie  pants together  during the drop. I don't need a chart to tell you that Bitcoin is on a continuing upward trend, in spite of coin price drops.
 Panicking and selling off not only hurts your longterm investment, but breaks the market down also. I know speculators that just made hefty purchases at high prices are losing,

 Don't panic there is a way to recover the loss

 You can sell your coin at 5% over Spot, take that money and repurchase coin at 5% under spot and resell. This way you do not lose your profit, you continue to accumulate coin and increase your holdings without purchasing more coin.

Because Bitcoin will continue to move upward in spite of a few downward spikes, you can't lose.

Try to convert business to accepting coin, inform them of BTC virtues, Security ( from Robbery ), Customers pay BTC fees, Goodbye to Credit, debit and Paypal fees for businesses, and it is quicker and easier than using plastic. Most important, this money will actually increase in value if saved, and can be used to generate even more income through the sale of the currency. You can't do that with American Dollars.

Look at these recent events

Japan accepts Bitcoin as legal tender

https://www.cryptocoinsnews.com/bitcoin-accepted-japanese-users-can-soon-pay-utility-bills/

Uganda First African Nation to Accept Bitcoin as Legal Tender

http://afkinsider.com/135498/uganda-become-first-african-nation-adopt-bitcoin-regulations/

These things are common in trading when it comes bitcoin happend many times, even many people will afraid with sudden fall but the people who good knowledge in trading will keep their bitcoin holding and make some decent profit when their price increases. The main thing when ever there is fall in the price people will start selling their bitcoin it makes market fluctuation.

[btcdiggingmaster]

Japan's accepting Bitcoin as legal tender is a great step in the Bitcoin market. But it is true that due to the panic the rate of Bitcoin will be fluctuating more than normal.

Today i hear the news regarding that japan is accepting bitcoin that very good to hear for bitcoin community where it can drive to increase the price of bitcoin. Panic will may change people mind and drive them to sell their bitcoin it makes fluctuating bitcoin market. But in trading market there is no space for stagnet price it keep move up and down it very common and normal.

[icecube45]

The information was very nice, friend. I really agree with the way that you give. It is true that the market panic could make bitcoin prices down, because if users bitcoin panic after knowing the release of economic news, it is usually the user will choose to sell their bitcoin. Here is the basic law of economy of force that is supply and demand. This condition will usually lead to selling pressure is high enough. Surely if the selling pressure is high then the price will fall significantly.

[buwaytress]

Good read, and no harm to repeat points as a way of constantly urging each of us to continuously promote and advocate for bitcoin.

To be honest, I don't quite understand why there would be market panic - the price surge was a bit sudden and it was bound for a correction.

I bit, therefore I am.

[BrewMaster]

Good read, and no harm to repeat points as a way of constantly urging each of us to continuously promote and advocate for bitcoin.

To be honest, I don't quite understand why there would be market panic - the price surge was a bit sudden and it was bound for a correction.

I bit, therefore I am.

i don't quite understand the reason for a market panic either, but generally it is because there are too many weak hands in the market and whenever there is a price change they all start thinking things are over and get scared so they start selling to not lose money and when it starts it can not be stopped until they are flushed out.

[maku]

Op, you are completly right, but there is fundamental problem with bad vs. good news effect on everything, bitcoin market included.
We need 4x, 5x more positive news or some HUGE bomb dropped to diminish even slight negative news. Look what happened in China - they just started to use AML/KYC, no big deal right?
But it caused whole Chinese market to go crazy.

[serjent05]

Japan's accepting Bitcoin as legal tender is a great step in the Bitcoin market. But it is true that due to the panic the rate of Bitcoin will be fluctuating more than normal.

It seems that the news about japan accepting bitcoin as legal tender doesn't spread that much thus people don't get informed about it and not really affecting the market that much. Although we can't expect anything from this news and it's just a good news about bitcoin. And the panic selling was actually a cut lose which were done by so many traders and always occur in every significant price decrease, nothing new here.

The reason for this, whales does not see this helpful in their current plan.  And rather see the China statement more appealing and will benefit them.  They ride it with an action of fake dump so they can accumulate much more cheaper Bitcoin.  Then when accumulation is done, they will use the news about Japan on Bitcoin and other good press that will make bitcoin looks good to uptrend bitcoin price.  

[rickadone]

I agree that many users have paniced recently and that their behaviour could influence the market. But it seems that this panic has stopped a bit and that their overall share in the market behaviour is not that big they could influence it significantly. But I'm a little afraid how big players on the market will behave in the next period, that could be crucial.

In fact, after the recent price increase followed by a slight drop, people started that the price was going down really so they started selling which made the price go down even further, but luckily it stabilized around $800, the thing is you don’t have to follow any one when it comes to the right time to sell, you have to be the who determine if the price is good enough for you or not.

[andrei56]

Markets have a tendency to overreact when there is a rise in price there is also the possibility that it becomes a bubble an when the price gets lower there is the possibility the price gets a lot lower than it should but it will eventually bounce back.

[deadsilent]

You know, traders are very fragile or sensitive. Once they see bad news, they quickly panic and sell their holdings and its a chain reaction. Once panic sell occur, they also follow. And for that the price will fall drastically. This situation is normal. Everyone can pump and dump. We cant stop them. FUDsters are responsible for this. Spreading bad news to all traders.

[poetra2501]

You know, traders are very fragile or sensitive. Once they see bad news, they quickly panic and sell their holdings and its a chain reaction. Once panic sell occur, they also follow. And for that the price will fall drastically. This situation is normal. Everyone can pump and dump. We cant stop them. FUDsters are responsible for this. Spreading bad news to all traders.

That's right folks, when trader see negative news against bitcoin, then traders will panic, sell or not. But most of them chose to sell their coins. It can make a market panic and then bitcoin price is down.

[singularityisnear]

Panic selling is something that occurs in any market, and the Bitcoin market is not an exception. This is mainly caused by traders who are not knowledgeable enough to identify the right time to buy and the right time to sell. This is certainly not a recommended market for amateurs.

[TastyChillySauce00]

Japan's accepting Bitcoin as legal tender is a great step in the Bitcoin market. But it is true that due to the panic the rate of Bitcoin will be fluctuating more than normal.

It seems that the news about japan accepting bitcoin as legal tender doesn't spread that much thus people don't get informed about it and not really affecting the market that much. Although we can't expect anything from this news and it's just a good news about bitcoin. And the panic selling was actually a cut lose which were done by so many traders and always occur in every significant price decrease, nothing new here.

The reason for this, whales does not see this helpful in their current plan.  And rather see the China statement more appealing and will benefit them.  They ride it with an action of fake dump so they can accumulate much more cheaper Bitcoin.  Then when accumulation is done, they will use the news about Japan on Bitcoin and other good press that will make bitcoin looks good to uptrend bitcoin price. 

Definitely. Japan have quite low bitcoin users and demands compared to what china have had and china also owning the majority of mining powers.
But I disagree that using the method of pumping with spreading good news about bitcoin regarding Japan accepting bitcoin will success, making news popular for twice is really hard and I think majority of people who's a traders, updated into the latest information, and really serious into this job will have big chance of knowing this news, it will not helping that much in the price pump