Why did we experience an overshoot in the price of Bitcoins ?

[ChiBitCTy]

" More Buyers than Sellers" This cracks me up that they threw this in there as a reason.  Like, ya don't say.  What do you mean by "No jobs"? That seems to me like it would be a reason people would be selling not buying.  Also that's not accurate that you can't make money in the stock market short term.  You can day trade making money today, stocks could continue to rise for several more years etc.

[hatshepsut93]

- People Investing their stimulus bills
- No jobs !!
- Stock market might be good for the long term , but right now I don't think people can really invest there for short term
- Gold prices is incredibly high
- Good representation of Bitcoins and many countries giving it the legal good to go status
- Bitcoins have outperformed Gold and S and P 500 index
- People in for HODL
- People loosing trust in the dollar which should definitely happen since they printed more money than ever and that a whole bubble that we are seeing right now waiting to take the market down ((+ am not comfortable with trading in US dollar personally too till the time America Gives Racial Freedom to all its citizens and stop treating people like Animals, I would rather risk the volatility ~))

- Barely anyone does that, people spend those money to cover their basic needs
- No jobs - no money to buy Bitcoin with. And people generally wouldn't gamble their last money on a speculative investment
- Stock market is booming right now, it's actually on its ATH
- So? Bitcoin isn't correlated to gold
- Maybe it contributed a bit, but not enough to cause a rally. It's not like Bitcoin is not a legal tender or anything
- So what, it's the nature of a risky investment to outperform big stocks when it's bullish
- We don't know how much trust in the US dollar people are really losing, but there aren't any signs of a real mass panic right now

[20kevin20]

" More Buyers than Sellers" This cracks me up that they threw this in there as a reason.  Like, ya don't say.  What do you mean by "No jobs"? That seems to me like it would be a reason people would be selling not buying.  Also that's not accurate that you can't make money in the stock market short term.  You can day trade making money today, stocks could continue to rise for several more years etc.

Not having a job puts you in a place of uncertainty where you're seeking financial refuge. Bitcoin is considered a great refuge by many (including me) from the failing financial system, so a lot of people may buy during rough times (the recent correlation between gold and BTC price pushes makes it even more obvious now). But this is just one reason out of possibly hundreds. There are too many to have a list of price influencing factors you can solely rely on.

Halving & halving FOMO, the USD inflation in the past few months, the virus situation, the rise of Gold, Bitcoin slowly becoming more mature as time goes on, adoption level, crypto legal status in certain countries .. etc. Whoever has the answer to all of these and the many others missing has a broad idea of what the market should look like.

[ene1980]

Sure most likely some of those events(or a combination of some of them) caused the price rise, but whatever. In the end, there's really not much we can do to accurately know what specific event caused it. All we know is that the demand increased, hence the price rise. Let's leave it at that.

It is true that we cannot accurately predict the specific events that caused the rally but one thing is that the financial institutions are playing a major role whenever the market goes high and i am expecting the same in this situation, i am yet to fully understand when and why they invest at certain period and whenever we expect a small correction the market is recovering strongly.

[MCobian]

I have to admit all the things you mentioned in the opening post did have an influence on the increasing demand for Bitcoin.
That makes overshoot in the price of Bitcoin, and of course this is good news for us as a cryptocurrency community. I see
loosing trust in Dollar as the strongest reason that makes the Bitcoin price go up.

[Yamifoud]

" More Buyers than Sellers" This cracks me up that they threw this in there as a reason.  Like, ya don't say.  What do you mean by "No jobs"? That seems to me like it would be a reason people would be selling not buying.  Also that's not accurate that you can't make money in the stock market short term.  You can day trade making money today, stocks could continue to rise for several more years etc.

More years it needs for the stock market to fully recover. Some countries had resume their Businesses but it never shows an inclining market sales but rather to see at a low level. That is to aggree with you that more people are selling but not buying at all.
@ OP,
With uptrend market sentiment for crypto, it wasn't because people are accumulating it now for future purposes or to make a trade but it is because they want to use this for payment. They only just converting their FIAT money to Bitcoin and soon once the crisis is over, they will convert it back to fiat again. "NO JOB, NO MONEY" It never fuel the market to surge HIGH but rather to keep at low.

[mk4]

It is true that we cannot accurately predict the specific events that caused the rally but one thing is that the financial institutions are playing a major role whenever the market goes high and i am expecting the same in this situation, i am yet to fully understand when and why they invest at certain period and whenever we expect a small correction the market is recovering strongly.

They are playing a role, sure. But to what extent? We have absolutely no idea if the institutional investors did a move significant enough that it actually caused the price rise. We don't even know if they're bullish in the first place, what if they were shorting it? Again, all boils down to we have no freakin idea.

[DoubleEdgeEX]

Afterwards everybody is smarter and it´s easy to point out random events to be a reason for a price movement. If you think about the decades of data we have for stock or forex trading, the little time we have for Bitcoin data makes Technical Analyses more something like Technical ANALyses. The impact of outside intereference is simply to big to get ignored and as it could be seen on the Halving, fundamental news might not trigger anything as well, which in summary makes the whole movement of a price pretty erratic and unpredicatable. We are still in the Wild Wild West of crypto and until there is a mass adoption and a clear global framework we will always see price movements in this or the over direction.

[serjent05]

Hello , I found an article and it did seem very interesting, the author tries to explain why Bitcoins broke the resistance and we saw an amazing rally.

https://www.coindesk.com/how-real-is-bitcoins-rally-8-interpretations-of-bitcoins-massive-surge

Buyers exceeding sellers

This for sure is the main reason why BTC overshoot in price, others are just assumption.

According to the author the following reasons did mark a uptrend  but there are few reasons I would like to add.

- People Investing their stimulus bills
- No jobs !!

Can you explain how this two help to overshoot BTC price?  Pardon me but I don't see the connection of these two to the current price increase of BTC.

Please do share what to you guys think ? ?

Majority of the given reason are just assumption, unless if supported by details and statistics.

[online73]

Hello to all. Overpricing or underpricing contributes to price dynamics - this is the driving force of any market. There are many reasons for the increase in the price of bitcoin, and if the price is at a high value, it means it is profitable for market makers, plus the dollar crisis before the presidential elections in the United States makes a significant impact on this process.

[(o)(o)ilikeboobs(o)(o)]

It's all just speculation based on available data. I remember 2019 when the IEO became the trend and the Golden Cross indicator caused Bitcoin to hit $ 14000 and this year's ATH was $ 12000.
Especially this year, the block reward continues to decrease by 50%, so maybe by the end of the year, the market will go faster, soon have strong growth to have a new ATH instead of waiting until 2021.