Markets taking profit

[paxmao]

A few people may be wondering about the step drop of bitcoin price these last days. It is quite usual for it to move up and down, although lately it seems that movements are faster than usual.

Just take a wider look to understand:

NASDAQ 100, last month + 8%, last year +60%
S&P 500, last month +6.4%, last year +47%
Bitcoin, last month -4%, last year +639%

Since the start of the COVID (in practice) to now, most indexed have exceeded their average returns, not to mention bitcoin. A movement such as this is a consequence and it may still be followed by more falls without meaning anything other than a profit taking and some caution around the ATHs.

[1715552368]

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[1715552368]

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[Poker Player]

While there may be some profit taking, it appears that the drop was caused by the conjunction of three factors, the hashrate drop by China, a tweet saying that the US Treasury department was going to charge some banks with laundering money with cryptocurrencies and a few over leveraged longs blowing up as a consequence.

I understand what you say about looking at the big picture and not getting demoralized as some are doing and I share it, but on the other hand, when talking about the returns obtained since the beginning of the covid, like Saylor and many others do, I think they are kind of cheating, because the logical thing would be to start counting from before the fall. That is, if you count the return of the S&P 500, do not do it from the bottom of March 20, but from January.

[jaysabi]

Anyone who cares what the price has done over a 1 week period has invested more than they should have. If it's so much of a concern, you're over exposed. Price movements over a daily, weekly, or even monthly period are meaningless over the long term.

[Darker45]

Anyone who cares what the price has done over a 1 week period has invested more than they should have. If it's so much of a concern, you're over exposed. Price movements over a daily, weekly, or even monthly period are meaningless over the long term.

Everybody cared I guess, since that last correction was rather deep. Had Bitcoin only lost a thousand or two in a single day, it would have been tolerable. But it went from almost $65,000 to around $52,000 in around 3 days. It happened so quickly that it came as a surprise. I'm sure nobody expected it. Nobody braced for its coming. No doubt, it raised a few questions.

But it shouldn't be a cause for alarm or panic. If such correction elicited very strong emotional reactions, you're right, perhaps one's investment might be too much. Or perhaps one is just weak or too optimistic or too greedy.

[sunsilk]

It's normal to take profits in each markets and with bitcoin's drop, we will always have that particular reason to think of because not everyone is going to hold forever.

There's always the action of taking profits because this is a market when someone sells, there's someone that's going to buy.

Anyone who cares what the price has done over a 1 week period has invested more than they should have. If it's so much of a concern, you're over exposed. Price movements over a daily, weekly, or even monthly period are meaningless over the long term.

I agree, you don't care if you're long term. Those daily drops and weekly corrections won't matter to you.

[DoverDoane]

exactly right !!!!
according to the facts in the market, profits and losses are formed by the market mechanism. based on supply and demand which forms a point of equilibrium which is called "price".
Traders take profits in return for effort and risk on a consensual basis, fairly without intervention from other entities.

[slapper]

I have expected the big sell-off since the beginning of April and I thought it had ended when the price of bitcoin hit $61000 but I was wrong. The main reason I believe in a big sell off is because we are in the first month of Q2 which big companies tend to take profit after a whole successful year. And it is apparent that bitcoin has increased more than 500% since the last year so it is not surprised when currently it is being dumped by different types of people, and institutional investors is not an exception

The overall trend of bitcoin is still up trend. So if you consider invest your money in bitcoin, this is a good time. My analysis demonstrate that bitcoin will retest $60000 one more time so that we will have more information whether it will reverse its trend to bear or not

[Snappycoco]

Yeah its true. Many early investors are probably be taking some of their profits added by some impacts caused by big companies selling off their assets. I also read some article where Coinbase executives sell of their coins after a successful IPO.

[doomloop]

A movement such as this is a consequence and it may still be followed by more falls without meaning anything other than a profit taking and some caution around the ATHs.

The level of profit taking might have been intensified because of pandemic threats. But, we have seen bitcoin had withstood against all pandemic and lockdown threads last year hence we do not need to change any of our perception toward the bull run of bitcoin; it will get restored as usual but how we are going to convince small and individual investors is the concern here. When microstartegy goes for another round of buying, then people may start stopping their profit booking.

[kryptqnick]

A few people may be wondering about the step drop of bitcoin price these last days. It is quite usual for it to move up and down, although lately it seems that movements are faster than usual.

Just take a wider look to understand:

NASDAQ 100, last month + 8%, last year +60%
S&P 500, last month +6.4%, last year +47%
Bitcoin, last month -4%, last year +639%

Since the start of the COVID (in practice) to now, most indexed have exceeded their average returns, not to mention bitcoin. A movement such as this is a consequence and it may still be followed by more falls without meaning anything other than a profit taking and some caution around the ATHs.

If what you're saying is that Bitcoin is still very profitable and the price is very high even after the recent correction, I fully agree with you. If considered an asset, Bitcoin is clearly the best performing one. If you're implying that Bitcoin's price decreased because people invested more into NASDAQ or S&P (hence they are experiencing positive growth, I think it's just a coincidence. I also think that it's not right to start the timing from the start of COVID because at the beginning of the pandemic BTC price dropped very low. It started growing significantly at the end of 2020 and continues to do so, but I don't think the pandemic has much to do with it.

[ilovealtcoins]

Bitcoin or stocks have grown rapidly and continuously over the past year. A part of investors taking profits is understandable because they already own assets at good prices.
Their profit-taking can be a signal of a market decline or just a price correction for the whole market. I don't act as soon as the market's value falls on the first day. It takes time to observe the entire market to enter an order. This experience will help us avoid early action and big losses.

[FanEagle]

Since the start of the COVID (in practice) to now, most indexed have exceeded their average returns, not to mention bitcoin. A movement such as this is a consequence and it may still be followed by more falls without meaning anything other than a profit taking and some caution around the ATHs.

I believe profit taking is a good move when the market is in need of money, but is it already done? I mean I do not know if it is already done going up. It is happening in bitcoin as well, there are people who are trying to take their profits so that they can live a better life, many people made a lot of money, but that doesn't mean that it's done, that doesn't mean that they should stop, it is really not a smart idea to let these things happen this way, they should be more careful and they should be doing something much more profitable than just taking out their profits.

This is why I believe there is nothing we should be worried about the future of these prices, bitcoin, nasdaq, any stock market really, gold, oil whatever we are talking about, if you are taking profit right now, I feel like you are running away early and not finishing the race.

[The Sceptical Chymist]

Anyone who cares what the price has done over a 1 week period has invested more than they should have. If it's so much of a concern, you're over exposed. Price movements over a daily, weekly, or even monthly period are meaningless over the long term.

I agree completely--not only is it unnecessary for a true bitcoin hodler to be concerned about such short-term price movements, but most of the time there's no obvious explanation to be found for any of them, nor would it make much of a difference to most hodlers even if there were.

This same thing drives me nuts in the mainstream financial news when they report on daily stock market movements.  Those talking heads have no idea why stocks are doing what they're doing on any given day, but that never stops them from babbling about "stocks going higher on the back of the new jobs data" or some such statement.  It just gives them something to talk about, but in the end it's all nonsense.

[Hydrogen]

NASDAQ 100, last month + 8%, last year +60%
S&P 500, last month +6.4%, last year +47%
Bitcoin, last month -4%, last year +639%

Since the start of the COVID (in practice) to now, most indexed have exceeded their average returns, not to mention bitcoin. A movement such as this is a consequence and it may still be followed by more falls without meaning anything other than a profit taking and some caution around the ATHs.

One factor in defining price movements is to identify which demographics comprise the largest chunks of purchasing/selling volume. If the NASDAQ increases 8%. Is the largest chunk of buyers composed of retail investors, hedge funds, banks or other parties?

This is a key question most casual traders and investors cannot answer. They would not know where the majority of capital fueling 8% in NASDAQ gains came from. This makes it difficult to predict what future price moves will be.

The federal reserve is the current largest buyer & holder of US treasury bonds. Their liquidity injected into investment banks, distributed towards purchasing US stocks under QE also comprise a significant chunk of US stock market trading volume. In projecting future price movements, those are relevant factors to take into account.

[magneto]

A few people may be wondering about the step drop of bitcoin price these last days. It is quite usual for it to move up and down, although lately it seems that movements are faster than usual.

Just take a wider look to understand:

NASDAQ 100, last month + 8%, last year +60%
S&P 500, last month +6.4%, last year +47%
Bitcoin, last month -4%, last year +639%

Since the start of the COVID (in practice) to now, most indexed have exceeded their average returns, not to mention bitcoin. A movement such as this is a consequence and it may still be followed by more falls without meaning anything other than a profit taking and some caution around the ATHs.

Definitely a ton of profit taking across the board. The Dow also fell significantly yesterday but managed to recover quite substantially over the course of today.

There should be absolutely no reason to be alarmed. It's almost comical seeing how the news media is making BTC's drop from its ATH a much bigger deal than it actually is (I've seen Bloomberg headlines that talked about how the 'unexplained' BTC correction caused panic in the markets or whatnot).

If you're not comfortable with this sort of market volatility, or profit taking activity, then you should probably veer away from BTC.

[Lorence.xD]

Anyone who cares what the price has done over a 1 week period has invested more than they should have. If it's so much of a concern, you're over exposed. Price movements over a daily, weekly, or even monthly period are meaningless over the long term.

That would probably be the case or that they are only aiming for the short-term gain on bitcoin so they are worried that the prices are steeping real low. To everyone who is in it for the long-term, I suggest that you should hodl it still since selling it right now isn't going to make you a big profit.

[Henrobakkara]

Anyone who cares what the price has done over a 1 week period has invested more than they should have. If it's so much of a concern, you're over exposed. Price movements over a daily, weekly, or even monthly period are meaningless over the long term.

That would probably be the case or that they are only aiming for the short-term gain on bitcoin so they are worried that the prices are steeping real low. To everyone who is in it for the long-term, I suggest that you should hodl it still since selling it right now isn't going to make you a big profit.

I Agree. I Understand that most that invested for a longer period of time understands that this price movements will happen and dont really pay much attention to them since they know what their aim target is and if you look at the chat on a higher time frame, you would realize that all the daily ups and down price movement dont really show.

[Lorence.xD]

~

I Agree. I Understand that most that invested for a longer period of time understands that this price movements will happen and dont really pay much attention to them since they know what their aim target is and if you look at the chat on a higher time frame, you would realize that all the daily ups and down price movement dont really show.

Exactly, the dumps of the day isn't going to show in the charts although a collective of them will definitely show but that too isn't an excuse to panic because in terms of investment, better days is going to come and you better have an investment when that arrives.

[Findingnemo]

A movement such as this is a consequence and it may still be followed by more falls without meaning anything other than a profit taking and some caution around the ATHs.

So anyone who is about to reap their profits then do as soon as you can because as said the price may fall as correction or certain bearish trend may begin. Long term holders keep HODLING!

Surely we are going to see huge price tag for BTC in few years so worth to take the risk.

[paxmao]

A few people may be wondering about the step drop of bitcoin price these last days. It is quite usual for it to move up and down, although lately it seems that movements are faster than usual.

Just take a wider look to understand:

NASDAQ 100, last month + 8%, last year +60%
S&P 500, last month +6.4%, last year +47%
Bitcoin, last month -4%, last year +639%

Since the start of the COVID (in practice) to now, most indexed have exceeded their average returns, not to mention bitcoin. A movement such as this is a consequence and it may still be followed by more falls without meaning anything other than a profit taking and some caution around the ATHs.

If what you're saying is that Bitcoin is still very profitable and the price is very high even after the recent correction, I fully agree with you. If considered an asset, Bitcoin is clearly the best performing one. If you're implying that Bitcoin's price decreased because people invested more into NASDAQ or S&P (hence they are experiencing positive growth, I think it's just a coincidence. I also think that it's not right to start the timing from the start of COVID because at the beginning of the pandemic BTC price dropped very low. It started growing significantly at the end of 2020 and continues to do so, but I don't think the pandemic has much to do with it.

More or less. What I am saying is that even if it is a steep drop, and may not be the last, the value of bitcoin is still quite strong and the fall may be linked to a profit taking. Many large investors are less bullish about next year than about last.

My personal take is that I am not selling even if the correction is stepper than this, since my plan is hodl for years the better part of my crypto. I do not use leverage nor run unnecessary risks, so I can keep on with my original strategy even if big drops happen.