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Author Topic: The reason bitcoin price is not stable.  (Read 571 times)
GeorgeJohn (OP)
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September 26, 2020, 06:09:45 PM
 #21

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Read @adzino's examples on news and events. I would like to add events like bitcoin halving also. Based on the past halvings, price tends to surge after halving. The latest just happened this year and if the trend continues, we could see btc surpass $20K next year. That's only a speculation and I don't want you to invest just based on that.
So actually someone don't have to invest in bitcoin when the price is high,please try to clarify me in this aspects of investment so that someone will be able to know when to invest especially beginners@Bttzed03
I don't think you understood what I meant with this "I don't want you to invest just based on that.". I didn't say do not invest because price will go up to $20K or higher, I was saying do not invest just because of the previous halving trend.

I suggest you start reading trading related books than asking all the questions here. It's faster and easier for you to learn that way.

Ok,its now I comprehend what you meant, I really know that reading those trading articles will enable me to understand more better.
Thanks for that @Bttzed03

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September 26, 2020, 07:15:57 PM
 #22

Only time will tell if Bitcoin has to become something stable or not. I doubt it'll ever be though.

With time bitcoin will become less volatile if not it can't successful full fill its main purpose of becoming a globally accepted currency which technically is the goal behind its creation. Atleast to some extent all fiat are stable unless when traded with other fiats, like for example, one pound is always one pound. With bitcoin that's not currently the case as the ideology of 1 bitcoin equaling to 1 bitcoin hasn't been normalize instead it always get compared to other fiats to determine its value.

Regarding the volatility, bitcoin is just a decade old, and with every year passing by, you can easily observe the volatility of the price constantly reducing which is some positive take for users wanting a stable bitcoin. Unlike previous years, you hardly see bitcoin doing the 10% plus gains per day. Sometimes it get boring watching bitcoin market which is obviously why the alts are gaining some ground in the industry as their gains are becoming more attractive compared to that of bitcoin.

But that doesn't mean overall they're preferable investment choices to bitcoin. Engaging in trading is one of the ways of taking advantage of the volatility of the price of Bitcoin (as I have earlier mentioned) and if you can perfect this skill you would probably make a fortune for yourself.

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September 26, 2020, 08:55:39 PM
 #23

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.


Bitcoin price is not fixed and it changes quickly based upon the demand of the bitcoins. The more the demand of bitcoin, the higher will be the price. For sure, it is advisable to buy bitcoin when the price is low and sell when the price is high. You need to have the technical analysis skill to determine the pump and dump of the bitcoin.









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September 26, 2020, 10:14:51 PM
 #24

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.

On simple Economics class then price will really vary on Supply and Demand. Price would never be constant even on traditional markets where price do moves but they do only differ out on intensity or volatility but everything is just the same in other aspects. Wondering the reasons behind of falling and raising?
1. Buyers and sellers 2. Whales  3. Other sentiments.
Studying up and able to have some grasp for someone to be able being profitable on this market is to those someone who had engaged for too long.It doesnt mean that they do able to know the price possible movement precisely but theyre just smart and a little bit mix of some luck when making out
buying and selling decisions.

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September 26, 2020, 10:58:05 PM
 #25

because bitcoin volume is still small in scale of other large economic markets and can be manipulated.  Also another major reason is that the markets are open 24/7 and in general are largely unregulated.  The combination of these things brings a lot of volitility to bitcoin.

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September 27, 2020, 02:13:10 AM
 #26

Mostly its pretty much the small amount of liquidity as compared to normal financial markets. You don't realise it but you don't need much money to move price a large percentage. Add to the fact all these high leverage futures exchanges and its not uncommon a few times a year to get >20% days. Which is not normal in most markets.

A large portion of bitcoins price is based on news. Remember the potential ETF listing of March 2017, see how quickly priced moved before, during and after the event. It basically concludes that bitcoin has very small liquidity and hence why it has such swings. These days there is more liquidity however many of that liquidity is based on high leverage margin trades which is not good when the market has a deep correction as what happened in March 2020.

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September 27, 2020, 06:29:43 AM
 #27

because bitcoin volume is still small in scale of other large economic markets and can be manipulated.  Also another major reason is that the markets are open 24/7 and in general are largely unregulated.  The combination of these things brings a lot of volitility to bitcoin.
.
.many people has render so many opinion which are different from another opinions in the thread so while market is unregulated is that no one can predict stability of bitcoin price. OK what are the causes

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September 27, 2020, 01:17:15 PM
 #28

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.



The first and foremost reason behind this one is market. Then the need and demand of particular crypto currency in the market.Last on is the current event related to cryptocurrency ,like the ban of bitcoin in some country. It also reflect based on the legalizing of bitcoin in certain country. Ban and legalizing will correct the demand of bitcoin.
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September 27, 2020, 02:54:11 PM
 #29

because bitcoin volume is still small in scale of other large economic markets and can be manipulated.  Also another major reason is that the markets are open 24/7 and in general are largely unregulated.  The combination of these things brings a lot of volitility to bitcoin.
.
.many people has render so many opinion which are different from another opinions in the thread so while market is unregulated is that no one can predict stability of bitcoin price. OK what are the causes
there is no way that the price will be stable because this is a volatile market and decentralized currencies.
this dictates the prices and the health of market,if the price becomes stable then what us the sense in investing inside crypto?
because bitcoin volume is still small in scale of other large economic markets and can be manipulated.  Also another major reason is that the markets are open 24/7 and in general are largely unregulated.  The combination of these things brings a lot of volitility to bitcoin.
Well manipulation wasn't that proven mate,though i also felt the same that since the market is still low then some whales can  make a trend to bring the prices ups and down.

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September 27, 2020, 05:41:39 PM
 #30

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.
How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Bitcoin price is volatile because Bitcoin is only 10 years old. Price is getting less volatile over time. In the past 10% daily price changes were often, right now are the exceptions.
If you are a trader you can predict future Bitcoin prices the same way as fro any other asset. There are million theories. They teach them in schools. You can find them on internet.
But trading will not grantee you profit. What guarantee you profit is buy and hold. Because Bitcoin price will for sure be higher 10 years form now as it is now. Ideal way to buy is a tiny bit every month. Buy as much as you can afford to forget about it for 10 years. Buy $100 a month or $50 or $10.
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September 27, 2020, 07:58:06 PM
 #31

Bitcoin price is volatile by nature and it's defined by market. Although some think that volatility can be controlled and that Bitcoin price can be stable one day I don't think that is possible. Besides, if there were no volatility how would traders and investors make money on Bitcoin price?

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September 27, 2020, 09:08:20 PM
 #32

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

When price is stable, there is an equilibrium of supply and demand. Buyers can't overpower sellers (forcing price up) and sellers can't overpower buyers (forcing price down).

When that equilibrium between buyers and sellers ends, that's when a breakout occurs.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

I would focus less on predicting price moves, and more on reacting to them.

It's important to identify when BTC is trading within a range, which is probably ~80% of the time. The most powerful and profitable moves will come when it breaks out of such a range. That's when you want to trade the trend.

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September 27, 2020, 09:55:14 PM
 #33

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.


Basically it all matters on supply and demand reason but there are also reasons about those thing and you can read this here Why the price of bitcoin is volatile I really the explanation on the article is one of the reason why we can't see a stable price or continuous pumping and better read it to get an interesting details about the situation.

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September 27, 2020, 10:05:43 PM
 #34

Bitcoin price is volatile by nature and it's defined by market. Although some think that volatility can be controlled and that Bitcoin price can be stable one day I don't think that is possible. Besides, if there were no volatility how would traders and investors make money on Bitcoin price?
Volatility will stay forever as long as there is buyer and seller so I also don’t believe that bitcoin will become more stable, it can be on a sideway trend but it wont stay there because either it will go up or down.

Don’t buy bitcoin on a higher price, if you see cheaper bitcoin do buy more and you can know this one by just reading the chart and the price movement of bitcoin, technical analysis is not easy though so you have to do your best.

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September 27, 2020, 11:55:12 PM
 #35

What drives these changes is because of its volatility feature, a certain character that we can never change, and I don't that we should have to do it. We shouldn't have to surprise seeing this thing, people come and invest Bitcoin then sell it and leave after, some got into a panic selling(buying high and sell at low). A lot of factors that had changed the momentum and we have nothing to do with that, we are not in control with the market, and much more we don't like it to be controlled either.



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September 28, 2020, 08:37:07 PM
 #36

Obviously the main reason would be people not really realizing they are involved in a currency that only works with supply and demand with absolutely nothing else along the way, that is the main reason why bitcoin is volatile, and crypto is also more volatile. When you have forex with government managed currencies and ton of regulations and also trillions of dollars exchanging everyday, that is less volatile as you might imagine, whereas when you have bitcoin with decentralized and not tied to anyone and no regulations of trading plus only few billion at best day, you get yourself a huge volatility.

It is just like that for the time being, and until we become trillions exchanged per day we are not going to suddenly change neither, that can't happen.

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September 29, 2020, 06:43:01 AM
 #37

What drives these changes is because of its volatility feature, a certain character that we can never change, and I don't that we should have to do it. We shouldn't have to surprise seeing this thing, people come and invest Bitcoin then sell it and leave after, some got into a panic selling(buying high and sell at low). A lot of factors that had changed the momentum and we have nothing to do with that, we are not in control with the market, and much more we don't like it to be controlled either.


So people buying bitcoin at higher rate and sell at lower rate it really affect bitcoin market volatility, so in these aspects no one can predict the constant price of bitcoin, does it mean that traders don't be aware when bitcoin price is about to go up and also come down, because everyone is emphasizing on volatility of Btc

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September 29, 2020, 10:01:53 AM
 #38

What drives these changes is because of its volatility feature, a certain character that we can never change, and I don't that we should have to do it. We shouldn't have to surprise seeing this thing, people come and invest Bitcoin then sell it and leave after, some got into a panic selling(buying high and sell at low). A lot of factors that had changed the momentum and we have nothing to do with that, we are not in control with the market, and much more we don't like it to be controlled either.


So people buying bitcoin at higher rate and sell at lower rate it really affect bitcoin market volatility, so in these aspects no one can predict the constant price of bitcoin, does it mean that traders don't be aware when bitcoin price is about to go up and also come down, because everyone is emphasizing on volatility of Btc
Not totally,only few stupid people that will Buy High and Sell Low,sometimes this is in despair because they Need funds in emergency .
but if given a chance?we will only buy Low and sell high forever,
Like me?i will never sell even if it fells down to $5,000 yet i will wait until it reaches 15-20k price.









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September 29, 2020, 10:48:00 AM
 #39

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.

Due to the fact that Bitcoin was decentralized so no individual nor company owns it the value is not being manipulated but rather it was all because of the supply and demand. So apparently, this is one of the answers to your question. Bitcoin's value increases because there's a high demand and it also falling because of high supply. Not only Bitcoin though but the whole crypto market was determined by the demand and supply. That's what makes it volatile.



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Rainbot
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fabiorem
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September 29, 2020, 11:30:18 AM
 #40

Its a speculative asset, used only for profits. Its not accepted as a payment method by merchants, and you cant use it to buy food.
It have been "legitimized" by Wall Street, so now you have contracts to buy and sell bitcoin without having the asset in hand. This increases the speculation over it.

The best way to hold bitcoin is to not come to this forum, and dont engage in any discussion about bitcoin and cryptocurrencies in general.
Also, avoid watching any video in the internet about bitcoin and technical analysis. And avoid the hype about financial products related to it.
In this way you will be able to hold bitcoin for many years.

First thing I feel when I come to this forum is to sell bitcoins. Its like a automatic trigger.
Same thing happens when I visit a YouTube channel about bitcoins.
Its difficult to resist the temptation to sell. The feeling of dumping bitcoins is kind of addictive.
But I cant do that when there is negative interest in banking "investments". Much better to hold bitcoin.
Even if it failed as a currency, it is still the best investment.

Want to be a holder? Stop talking about bitcoin 24/7.
And set your own wallet. Treat it as a treasure for life.
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