Bitcoin follows the microeconomic theory of supply and demand.
Looking at the microeconomic theory of supply and demand in relation to bitcoin, it is clear that the demand curve for bitcoin simply shows how people are inclined to buy bitcoin at different prices. Thus the concept of buy the dip. While on the other hand, the supply curve is an indication of bitcoins' willingness to supply at different prices. Thus, the maxim, "buy low, sell high". The shifts in demand or supply curves can occur due to various factors which includes market sentiments, regulatory changes, technological developments, institutional adoptions, or geopolitical events.
