Correlation between buying and selling of bitcoin: Is it a technical methodology

[odolvlobo]

Buying and selling are proportional to each other, because you can’t buy when there’s no seller. If that is the case, won’t buyer=seller; then where does the market programmed that way to increase or reduce the price of bitcoin come into play in such scenario?

The market isn't "programmed". The exchange doesn't set the price. It just reports the price of the most recent trade as "the price". The exchange actually reports three prices: bid, ask, and last. bid is the highest price that any buyer is currently offering to pay, ask is the lowest price that any seller will currently accept, last is the price of the most recent trade.

Traders set the price they want to buy or sell at, and the prices of trades change as a result of traders competing against each other. If a trader can't buy or sell at the desired price, then they have to raise or lower the desired price until they can execute a trade.

Also, there are people that buy or sell "at the market", which means they pay the ask price or they sell at the bid price.

[Yamane_Keto]

Every average of 10 minutes, a Bitcoin block is mined with thousands of transactions in addition to 6.25 new Bitcoins being generated. These Bitcoins may enter the market directly as a quantity offered or may be kept. If they are kept, the market will change according to the price movement over the two days, even if there is a demand higher than Selling will increase the price, and the statement is true, so you always find that after the block reward is reduced, the miners keep Bitcoin because they believe that its price will increase, and traders and investors will do likewise. As a result, there is no new supply and there is an increase in demand, so the price rises.

[Spaceman1000$]

For the time being I have joined bitcointalk and also the bitcoin market. I always hear that, when the market is buying there will be an increase in price of bitcoin and when it is selling there will be a decrease in the price.
My question is that, what makes the price go up as people are buying and the price goes down as people are selling because what I understand is that this action cannot increase or reduce the quantity of bitcoin available, so what action actually makes it to increase or reduce in price, is it the marketers, miners or who does that? Is there any technical reason behind that actually?
More clarification on this will be appreciated.

The law of  demand and  supply has a lot to do with the increase in  supply and availability of the product(bitcoin), once there is a scarcity of the product, the value goes high,  so also if the product is very much available, the value drops. So the market forces between the buyers and sellers, always determines if the value will increase or decrease.
So if a seller deside to sell the product at a higher amount, automatically most sellers will tow towards increasing amount of the product, buyer's will try to fight that amount to a lower price. Hence there will be a back and forth price range between both of them.

[sunsilk]

There is no such thing as marketers on this market. It's all about the supply and demand of Bitcoin and that's making the price go high and down.

That's more of the technical thing and also about the halving which cuts the reward for the miners, when there's lesser reward for the miner. It's giving the lesser amount of Bitcoin which makes mining more expensive because the supply that's being mined is lesser than before.

Moreover, just go back to the law of supply and demand and that's it.

[SOKO-DEKE]

For the time being I have joined bitcointalk and also the bitcoin market. I always hear that, when the market is buying there will be an increase in price of bitcoin and when it is selling there will be a decrease in the price.
My question is that, what makes the price go up as people are buying and the price goes down as people are selling because what I understand is that this action cannot increase or reduce the quantity of bitcoin available, so what action actually makes it to increase or reduce in price, is it the marketers, miners or who does that? Is there any technical reason behind that actually?
More clarification on this will be appreciated.

What causes the increase and decrease in price of Bitcoin is demand and supply,as far as Bitcoin is limited in supply, if people are demanding for it the price will definitely be increasing  due to it level of scarcity it may be at that particular time, for example you want to a market to get a chicken but due to poultry disease at that particular period and affect poultry they are no many chicken available in the market and other people also in need of chicken at that particular time due to the scarcity of chicken in market people will come with different high price just to get the chicken because it is limited in the market their the price will be increasing, As a result, when there is a large supply of chickens on the market and a lot of people are selling and they are is no many buyer, some sellers will lower their prices simply because they want to sell, while other sellers will do the same, and from that point on, the price will continue to decline because everyone wants to sell.The same holds true for Bitcoin; the more that people buying, the more that the price rises; however, if there are also many selling in the market, the price will continue to fall.

[MFahad]

With selling the price become reduces but on the other hand price become boost up if lots of individuals are buying bitcoin because the number of bitcoin present is limited. If lots of bitcoin are in circulation then more people will buy it and and eventually it will increase in price as the number will be reduced after buying. It's obvious that if something is unique and limited in number then it's value will be higher than those materials which are more in number. There is no specific mechanism behind the lower and higher price but the fact is that Sometimes price is also effected by information generated by the people as a consequence of which supply and demand altered and automatically the worth of bitcoin also alter.

[Nrcewker]

Let me make it very clear for you my friend. Bitcoins are fixed in number, that is no more Bitcoins can be created. Now as Bitcoins are fixed in number, so if the demand to accumulate the coins increases, the supply will become less. In order to fulfil the demand the price goes up, and hence you see price increase, when more people buy the coin. Similarly the reverse happen, when more people sell the coin, they keep the selling price low to sell the coins instantly, and hence the price decreases. Hope this clears some of your doubts OP.

[hugeblack]

You know what people buy, either through trading platforms, in which buy and sell orders can be observed in real time, or through public company statements, which are issued every 3 months after the end of each quarter in the fiscal year, and can be monitored publicly, but you can also buy in the OTC markets and from miners. Directly, this has an impact on the price, but the average individual cannot access such information.
So, the price of Bitcoin changes with changes in supply and demand, but we cannot see all the supply and demand processes, or at least we are unable to see them in real time.

[Fivestar4everMVP]

For the time being I have joined bitcointalk and also the bitcoin market. I always hear that, when the market is buying there will be an increase in price of bitcoin and when it is selling there will be a decrease in the price.
My question is that, what makes the price go up as people are buying and the price goes down as people are selling because what I understand is that this action cannot increase or reduce the quantity of bitcoin available, so what action actually makes it to increase or reduce in price, is it the marketers, miners or who does that? Is there any technical reason behind that actually?
More clarification on this will be appreciated.

I believe you probably must have gotten the answer you need by now seeing that the discussion has been up to two pages already, but let me also chip in what i think is also an accurate answer to your query.

The price of bitcoin is very much determined by the market's supply and demand, supply in the sense that, the more there is more bitcoin in the market to sell, that is, if there are a lot of holders who wants to sell their bitcoin, and the demand is low, demand in the sense that, those willing to buy those bitcoins offered up for sell is low, then this simply means that, the price of bitcoin will likely go down due to the low demand for bitcoin and the high supply of bitcoins for sell.

But on the other hand, when the supply is low, like, if those wanting to sell bitcoin is very low in number, and there are a lot of people wanting to buy bitcoin, that is, the demand for bitcoin is high, it simply means that the price of bitcoin will increase due to the high demand for bitcoin and the low supply of bitcoin up for sell.

I hope this is simple and understandable enough.

[AmoreJaz]

Let me make it very clear for you my friend. Bitcoins are fixed in number, that is no more Bitcoins can be created. Now as Bitcoins are fixed in number, so if the demand to accumulate the coins increases, the supply will become less. In order to fulfil the demand the price goes up, and hence you see price increase, when more people buy the coin. Similarly the reverse happen, when more people sell the coin, they keep the selling price low to sell the coins instantly, and hence the price decreases. Hope this clears some of your doubts OP.

in short, it is the supply and demand concept that move in this market just like any other market. however, to determine the factors affecting such demand is quite varied and so it is difficult to pinpoint one single factor that can influence in this market.
this is why no one can advise him when will the price will go up or down, you can just observe the market and conclude a good guess to where it is going so you can decide if you will buy or sell at a given time period.

[jeraldskie11]

Since the total supply of Bitcoin will not increase by the time where there is a buying or selling pressure, the price moves up and down easily. Meaning the price will depend only in the marketcap.

If the market cap increase 20%, the price will also increase 20%. It's just a law of supply and demand, if there's huge demand of a item, what will people do avoid running out of supply? Ofcourse they make the increase of price of an item.

Since Bitcoin has a fixed supply, sellers won't sell Bitcoin with the same price, it's true if you check the order book, and we have to understand that we have a lot of Bitcoin holders. So investors cannot buy a lot of Bitcoin with same price, it's normal that they have to take price of a seller to be able to do a transaction.

[Unbunplease]

Since the total supply of Bitcoin will not increase by the time where there is a buying or selling pressure, the price moves up and down easily. Meaning the price will depend only in the marketcap.

If the market cap increase 20%, the price will also increase 20%. It's just a law of supply and demand, if there's huge demand of a item, what will people do avoid running out of supply? Ofcourse they make the increase of price of an item.

Since Bitcoin has a fixed supply, sellers won't sell Bitcoin with the same price, it's true if you check the order book, and we have to understand that we have a lot of Bitcoin holders. So investors cannot buy a lot of Bitcoin with same price, it's normal that they have to take price of a seller to be able to do a transaction.

In this way, it is worth considering that one real person (or a group of people) can own many wallets and use them for the purpose of various manipulations related to a bunch of indicators and other indicators. Therefore, it is difficult to determine the real correlation here

[Adbitco]

Selling or buying doesn't controls the market mostly especially I can say the market is seasonal whereby whenever it's time for Bull run we all experience price surge an uncontrollable price increase, likewise to bear season or whenever it's time for dip we can see price declining without any reason and or just because people knew it's bear so the fear to lose their funds is what they can't control. However to me it's basically depends on demand and supply whereby when the demand for bitcoin is high we often experienced increased in price and vise versa.

[el kaka22]

How is this a difficult thing to understand? I mean lets try to remain a bit mode judgmental but assuming that the question is a legit one, when people buy something, the demand goes up and supply either stays the same or goes down, which makes it go up, because there are not that many left, and people want more for theirs when the yare selling since it's more rare, and when there are a lot more sellers, that means it is not rare, it's common, so the value of it drops. Think about it like gems, when the gem is rare, the value goes up, and when a gem is common the value goes down.

Gold is more valuable than bronze, why? Because you can find bronze commonly, but gold is rare, very limited. These are all important things and makes the price go up and down, just like in any other market. I want to believe that OP really asked it and not really and not really had any other intention, but it does sound like one that is a bit different and difficult to respond when it's this basic.

[Mpamaegbu]

My question is that, what makes the price go up as people are buying and the price goes down as people are selling...

More clarification on this will be appreciated.

It's basic economics that's entrenched in the law of Demand and Supply, like some users above have explained to you. I said it's basic because no one needs to be highly educated to understand this law. To buttress it further, take for instance someone brings to you a television set that you aren't willing to buy but wouldn't mind having, anyway. You wouldn't be so much interested to bargain upwards with them because you aren't in demand for it. You're going to quote a price that's likely not going to be in favour of the seller. The seller may walk away but may likely come back to you if they don't get someone else to quote a higher price than yours. If the seller gets someone else to buy it off, it means demand is still there for it but if not and they come back to you, you're more likely going to negotiate further down with the seller. That's how price will keep going down if the scenario keeps playing out that way. It's lack of demand that causes buyers to have an upper hand as sellers will be in panic mood to sell cheaper. Every seller in panic wants to quickly sell off so as not to incur more loss. The reverse is the case with this scenario that I've shared.

[DVlog]

There is no such thing as marketers on this market. It's all about the supply and demand of Bitcoin and that's making the price go high and down.

That's more of the technical thing and also about the halving which cuts the reward for the miners, when there's lesser reward for the miner. It's giving the lesser amount of Bitcoin which makes mining more expensive because the supply that's being mined is lesser than before.

Moreover, just go back to the law of supply and demand and that's it.

Supply and demand are basic financial fundamentals. When supply increases prices drop When demand increases supply decreases and prices move upward. Mining rewards should make bitcoin inflationary though halving is supposed to slow down the process. So most of the rally in the bitcoin market comes from demand factor. The more new investors come to the market and take a portion of the bitcoin supply out of the market the more demand increases. Halving creates a FOMO in the market so investors rapidly accumulate bitcoin and create a huge gap between supply and demand that causes super spike in the price after halving.

[Kasabus]

For the time being I have joined bitcointalk and also the bitcoin market. I always hear that, when the market is buying there will be an increase in price of bitcoin and when it is selling there will be a decrease in the price.
My question is that, what makes the price go up as people are buying and the price goes down as people are selling because what I understand is that this action cannot increase or reduce the quantity of bitcoin available, so what action actually makes it to increase or reduce in price, is it the marketers, miners or who does that? Is there any technical reason behind that actually?
More clarification on this will be appreciated.

It's always the market's supply and demand that makes the price to increase or decrease its own market value, and probably the seasonal changes in the market as well. Of course, when people are rushing to buy bitcoin, its demand increases while the supply decreases, thus making the price to increase as well. But when these investors decide to sell their bitcoins, most likely the demand decreases while increasing its supply, hence making the price again to drop low and decrease its value.

However, seasonal changes may also affect the market value of bitcoin. When the market is bearish, it is assumed that majority of the crypto coins are in bargain price, and bitcoin is not an exception. But when the market turns bullish, bitcoin price also is expected to soar high again, but only few of the altcoins can follow its path, as most of them find hard time to increase their own value.

[lombok]

For the time being I have joined bitcointalk and also the bitcoin market. I always hear that, when the market is buying there will be an increase in price of bitcoin and when it is selling there will be a decrease in the price.
My question is that, what makes the price go up as people are buying and the price goes down as people are selling because what I understand is that this action cannot increase or reduce the quantity of bitcoin available, so what action actually makes it to increase or reduce in price, is it the marketers, miners or who does that? Is there any technical reason behind that actually?
More clarification on this will be appreciated.

It's always the market's supply and demand that makes the price to increase or decrease its own market value, and probably the seasonal changes in the market as well. Of course, when people are rushing to buy bitcoin, its demand increases while the supply decreases, thus making the price to increase as well. But when these investors decide to sell their bitcoins, most likely the demand decreases while increasing its supply, hence making the price again to drop low and decrease its value.

However, seasonal changes may also affect the market value of bitcoin. When the market is bearish, it is assumed that majority of the crypto coins are in bargain price, and bitcoin is not an exception. But when the market turns bullish, bitcoin price also is expected to soar high again, but only few of the altcoins can follow its path, as most of them find hard time to increase their own value.

The basic laws of economics, in any market, are commonplace and can be understood easily. Research on traditional markets in our region will also answer the same question of supply and demand. Therefore, perhaps OP needs to learn more about these basic things before starting to trade. I'm afraid that if the OP doesn't fully understand basic things like this, he will trade in vain (trade blindly)

[wxa7115]

For the time being I have joined bitcointalk and also the bitcoin market. I always hear that, when the market is buying there will be an increase in price of bitcoin and when it is selling there will be a decrease in the price.
My question is that, what makes the price go up as people are buying and the price goes down as people are selling because what I understand is that this action cannot increase or reduce the quantity of bitcoin available, so what action actually makes it to increase or reduce in price, is it the marketers, miners or who does that? Is there any technical reason behind that actually?
More clarification on this will be appreciated.

You need to learn more about the law of supply and demand, it took humans a lot of time to learn it but we finally understood how both forces are related.

The price of bitcoin goes up when the demand goes up as its supply is limited, so in order to get it people are willing to pay a little bit more in order to hold some bitcoin, and this process is what increases the price as this happens all over the world at the same time with billions of dollars on the line, and as you may guess when we see the opposite and more people are willing to sell then this increases the supply at exchanges, and in order to get their fiat as fast as possible people are willing to sell for a discount and this process reduces the price.

[TimeTeller]

You need to learn more about the law of supply and demand, it took humans a lot of time to learn it but we finally understood how both forces are related.

The price of bitcoin goes up when the demand goes up as its supply is limited, so in order to get it people are willing to pay a little bit more in order to hold some bitcoin, and this process is what increases the price as this happens all over the world at the same time with billions of dollars on the line, and as you may guess when we see the opposite and more people are willing to sell then this increases the supply at exchanges, and in order to get their fiat as fast as possible people are willing to sell for a discount and this process reduces the price.

Supply and demand is the basic driving force in any market price movement and so is with crypto or btc.
As the supply is fixed, then, we can say, demand is the major reason of this roller coaster ride.
And such demand is owed to various players or factors, and up until now is very ambiguous as it encompasses a lot of contributing factors.
This is why you need to keep up with the market, and learn those factors such as new developments, new stakeholders, unexpected events such as big crypto companies collapsing or bankruptcies, among others.