Why we need price crashes and panic selloffs

[syamster]

But to make it happen quite difficult because each trader has a different attitude so that when bad news comes about bitcoin, the majority of traders immediately sell assets without thinking in the future and worsen the market situation.

indeed events like this often happen, because many who think that the price will not come back again or will not rise again, but this event sometimes come only briefly.

Yes it is usually happens price of bitcoin never remain the same as it gets high and low, so we need to sue the opportunity at right time and right place, it is good to buy when you find price falling and sell when you find price increasing, so we want price crash to get the chance to buy low and sell high to get profit and grow our bitcoin the best way.

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[The_Dark_Knight]

This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.

The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.

It is not we need crashes it is just crashes are inevitable, even in a heavily regulated market like stocks we see crashes at least once a decade and in a market like the one we have it is natural we will see more crashes than that, so as long as we remain concentrated in our goal of making the most out of our investments we will never fall victim of the crashes and we will keep holding and only sell when we reach our target price.

[squog]

Actually what we want is for crypto currencies to be controlled ny the masdes themselves by buying and holding crypto currencies. Panic selling just helps whales to control the market prices as it is. The price crashes happens when people sell. This is coilunter productive to what we want which is a stable and strong coin.

[Kakawate]

This is actually a good thing, and I agree with what you are saying, crash and panics are needed most especially for traders, this events cause us to be able to buy cryptocurrencies which prices are just so high in prices which are more affordable, this way, we will be able to make lots of profit in return.

[Ilegendph]

This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.

The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.

I think what you're trying to say is that crashes are needed to redistribute bitcoin to the strong hands from the weak hands. In order for the price to increase we will need people with a lower willingness to sell but that doesn't mean that we need a crash for such a thing to happen.

Crashes are useful in ways, take for example the last one, if we say 6k is the bottom, we now have many who bought in for large amounts at 6k, they will then be holding strong for a while more for a considerably higher price, whereas we maybe lost a lot of people who had initially bought in the 1-3k range and were willing to take their profit.

While I agree with the premise, the simplicity of it is that it all comes down to demand and supply at a certain price.

Crash in a market is normal specially for bitcoin. People tend to sell their bitcoin specially if government and/or news like regulation, ban and fork is spreading. I saw different news like this that makes the market crash but OP is right- Bitcoin will just soar up once again.

[crazycatwoman03]

This is actually a good thing, and I agree with what you are saying, crash and panics are needed most especially for traders, this events cause us to be able to buy cryptocurrencies which prices are just so high in prices which are more affordable, this way, we will be able to make lots of profit in return.

This dumps, we definitely need it because it will be a good opportunity for us earn profit and take advantages of the volatility. Aside from that, dumps will also attract investors to buy coins for very low prices which will affect the market prices positively making it rise again and making us all gain profit. Dumps could take a long time before a pump happens again and this is what we are currently suffering. It is really stressful and frustrating but holding on to what I believe that bitcoin will be a big thing in the future, I don't have plans for selling what I have for low prices. I will continue hodling and doing trading at the same time. I know that I just have to be smart in doing it.

[andika2018]

This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.

The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.

I am agree with this opinion. Panic selling can clean market from weak hand. When peoples holding bitcoin for long term, it will reducing supply in market and thats make bitcoin price rising again.
We should not be a panic seller because cryptocurrency market still a new market and i am believe this market will growing bigger than before

[Lorence.xD]

Are you blaming the crash on newbies? The bigger issue are the people who control and are better able to manipulate Bitcoin. Assuming there are such entities, which I think there are. These are the people that dictate things.

Read the post properly, and you'll understand what OP is talking about. To cut a long story short, weak hands need to liquidate their positions (preferably below the point they got in) to allow the market to grow further afterwards, and for that to happen we need crashes and corrections every now and then. In other words, whether a crash has been initiated artificially, or due to the market being overbought, it is a very healthy occurrence helping the market forward in the long run. This way, the bottom after each next crash will always be higher than the previous bottom, and this trend is something we have experienced consistently throughout the years. Great and spot on observation by OP.

 Great opinion on the topic, additional inputs, newbie often time Hold on to long to their Cypto currency coin, which in turn affect the market movement dependent on the volume of investment was put in into the market, Yes, it is normal happening in the market to experience some up and down on the price value of one coin, market is Volatile, it is only the strong remain during this time which eventually indicate the possible huge investment after the down stream or the crash, end result a possible bull run or spike high of the market price value of crypto coins.

[Leyss]

Sometimes, of course, a price shock for bitcoin is necessary. And periodically the collapse of bitcoin, also, apparently, is inevitable. Bitcoin will sometimes rise rapidly in price and also fall quickly. Beginners will always be in a panic selling their bitcoins. Sometimes there will be big ups and downs, but they do not bring popularity to the bitcoin. Big volatility bitcoin, most likely, will always remain, and with it, and large price swings.

[Crypdon]

The good thing about bull runs is that it will attract new punters who are looking to take a quick shot at making some fast cash. Bear markets will weed them out leaving the serious players and stronger hands

[XCANA]

Actually the value of Bitcoin and other altcoins must come down for one to be able to buy at a cheaper rate and sell later when its value appreciate.Although there are so many factors that are responsible for Bitcoin up and downward movement and the one you just gave analysis is just a fraction of what move Bitcoin up and downward direction.

[JohnWick_Bitcoin]

This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.

The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.

The reason why we need bitcoins to die sometimes is because of the people who does not have a decent amount of money to invest, so volatility is always needed in order to earn more profit.

[mrs_bitcoin]

This is true, but those who wanted to sell the crypto currency at a low price and panicked already certainly did it, and now there are only people who will never sell their cryptocurrency assets cheaply. So I think that the fall is over and prices will start rising soon.

[xyandrobot]

No one can predict the crypto market. all crypto markets are already set up ie investors who have large assets.

[Golftech]

This is true, but those who wanted to sell the crypto currency at a low price and panicked already certainly did it, and now there are only people who will never sell their cryptocurrency assets cheaply. So I think that the fall is over and prices will start rising soon.

No assurance for that mate, there's still a lots of chances that the value will fell, don't forget those short traders who manage to buy btc in a cheap value, for sure they can easily sell out and drag down the price, just like what OP said its better for bitcoin to crash for a while and when the right people holds it and begin to hold and believe that this future money will be more valuable then it will rise high without any limits.

[Deubila]

This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.

The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.

The reason why we need bitcoins to die sometimes is because of the people who does not have a decent amount of money to invest, so volatility is always needed in order to earn more profit.

The trading volume is very weak in the session and the volume of trading is strong once the price starts declining indicating the probability of falling will increase. In such a case, the risk of Bitcoin dropping is likely to occur

[Liberto]

It is simple to understand it. In that way people sell and others are buying it, result getting benefit. Crashes and panic selloffs create new opportunities for people who believe in cryptocurrency. They can buy for good price.

[jackylion]

such if enough enough enough Keep will be an existing one of the last blocks. if they are determine that, they will be successful as that they will waiting and the valid price.

[Liberto]

I'm not agree with you. In order for bitcoin to rise again in price, it should become a reliable currency, but in the near future it definitely will not happen. Growth bitcoin is possible only if the financial institutions are again believed in and begin to invest monay.

[yuzefa]

I'm not agree with you. In order for bitcoin to rise again in price, it should become a reliable currency, but in the near future it definitely will not happen. Growth bitcoin is possible only if the financial institutions are again believed in and begin to invest monay.

In my opinion, BTC just need new investors. Doesn't matter if it's a reliable currency or not.
When new investors will come (and they will) BTC will rise again, probably with a long bullrun.