Has anyone ever studied how Bitcoin could dramatically drop?

[Agbamoni]

I have studied how Bitcoin does dramatically drop, and the numbers are stunning. The first Big Bull market went from $1 to over $32 very quickly and when the crash came it eventually bottomed at almost exactly $2! Every other big rise has been followed by a Huge fall. How and why people enjoy blindness to this reality (ie HODL!) is hard for me to understand, but their losses create gains for good traders.

No study has ever proved that Bitcoin operates using a structured pattern. Yes Bitcoin will rise and Bitcoin will fall at certain interval that is its nature due to fluctuation. If you have studeid Bitcoin well then you should know that Bitcoin rarely go below its previous ATH and there are several reasons to the price dips.

Another thing your study should have thought you by now is that after a bearish season Bitcoin comes back up and it does breaks new ATH. This means there is a level of price drop we cant see around Bitcoin. Bitcoin cant go below $10k if i am wrong prove the logic that it will?.

[Agbe]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

Bitcoin is a volatile digital currency and it fluctuate at any second so the matter someone study the movement, he or she can't get the accurate information on the rising and falling price of bitcoin. And what you have to know is that, bitcoin has two seasons. Bear Market season and Bull Market Season. And we have been on the rise since November 2023 and now it is above $104+k. And we don't know what price the bear market will be and that is an another prediction on it own. If you are investing then you don't have to look for the dip or the rise but DCA is good for you. And if you are trading, use the movement of the candlesticks, line and bars to check the movement, there are other tools but o don't know your comprehensive ability so you can go with that for the start.

[kryptqnick]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

Bitcoin price movements are no secret, so it's easy to look at the charts and see for yourself. Bitcoin drops in value dramatically regularly (although that also depends on what you consider a dramatic drop). Sometimes it can recover quite fast, but if it's the bear market coming, it might take several years (around 3 years, to be more exact) for Bitcoin to fully recover. That's just how it works, which is why patience is key with Bitcoin. If you're not okay with your investment being 60% down for a couple of years, Bitcoin just might not be for you.

[JiiBs]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

Bitcoin price movements are no secret, so it's easy to look at the charts and see for yourself. Bitcoin drops in value dramatically regularly (although that also depends on what you consider a dramatic drop). Sometimes it can recover quite fast, but if it's the bear market coming, it might take several years (around 3 years, to be more exact) for Bitcoin to fully recover. That's just how it works, which is why patience is key with Bitcoin. If you're not okay with your investment being 60% down for a couple of years, Bitcoin just might not be for you.

60% down is much, that’s way more to chase a scare for real. That is, given the consideration of where you bought Bitcoin and not exactly where it pumped to and later dropped. When it dumps 60% that’s below average and just 40% from complete liquidation and I’m guessing that could never happen or would never happen.

The Big investors having huge stake in Bitcoin would never let this continue, they would buy more as a way of getting other traders to see it for a buying opportunity which it is eventually and would buy to get price pumping once more.

[RockBell]

Bitcoin price movements are no secret, so it's easy to look at the charts and see for yourself. Bitcoin drops in value dramatically regularly (although that also depends on what you consider a dramatic drop). Sometimes it can recover quite fast, but if it's the bear market coming, it might take several years (around 3 years, to be more exact) for Bitcoin to fully recover. That's just how it works, which is why patience is key with Bitcoin. If you're not okay with your investment being 60% down for a couple of years, Bitcoin just might not be for you.

Everything about bitcoin is transparent and everything can be clearly understood so there is no need to think anything is secret a true word was said there, the only thing you need is to understand the market and the chart then you have less worries and you will see everything in the chart the period there was an increase and the time the market was down, it is all shown in the chart and it's very easy to read just that people are lazy and they don't want to stress there self to much in reading does chart.

And for now how the market drops does not matter that much and when you already have knowledge about bitcoin I don't see the reason why anyone need to panic against the dramatic fall that is even if there is one because understanding the dramatic fall is what I don't even understand and you can predict the future of bitcoin sometimes, because the price might drop and the next thing might be another increase.

And patience is just the key thing as you said, there is no way you want to do a long time investment and you won't have patience is not even possible, so anyone one your tell about any long time investment should be ready to hold on for a long time.

[Tmoonz]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

There is no need to worry too much about Bitcoin's journey because you can check it on historical data and even though Bitcoin has experienced a fairly sharp decline in its journey in the market, there is always momentum for Bitcoin to rise again so that its price in the next cycle will increase. Excessive worry actually occurs because someone does not understand Bitcoin's journey so they feel panicked and worried when Bitcoin experiences a fairly sharp decline.

Forget about the decline and increase your investment responsibly so that you will see new price movements in each cycle that runs and most importantly do not panic so that it will be much easier for you to understand the journey process.

Panicking are mostly associated to those who approaches Bitcoin investment in terms of seeing it as a quick and get rich scheme for short term profit maximization within the shortest time frame, anyone thinking about Bitcoin investment should have long term perspective hence there wouldn't be any need for panicking because you are not yet ready to sell but to keep increasing and holding and that's is the best approach because it values can appreciate over time resulting compounded value of the assets over the long term. However, anyone investing from his or her discretionary income is not meant to panic because it is assumed that the basic needs are already taken care of.

[coolcoinz]

The important part is that bitcoin is attractive and useful, just like many other technologies that continue to exist. This means that even if it drops it's going to be due to market sentiment, not the lack of value.

I always say that there is price and there is value. Bitcoin's market price can change but it's always valuable and it's real value is somewhere in the middle of the market price, which is why moving averages are such good indicators. Don't worry that bitcoin could drop, it's not important. The important part is it will stay in the average and that average is somewhere above $50k right now. Accept that it could go below the average for a while, but eventually will come back to and above it.

I've seen $5k bitcoin, so $50k is fine. I guess you have to grow into it and the earlier you start to get used to being under your entry price the easier it will be for you to hold. All holders were under water at some point and made it back above. The first time is always the hardest.

[Obim34]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

There is no need to worry too much about Bitcoin's journey because you can check it on historical data and even though Bitcoin has experienced a fairly sharp decline in its journey in the market, there is always momentum for Bitcoin to rise again so that its price in the next cycle will increase. Excessive worry actually occurs because someone does not understand Bitcoin's journey so they feel panicked and worried when Bitcoin experiences a fairly sharp decline.

Forget about the decline and increase your investment responsibly so that you will see new price movements in each cycle that runs and most importantly do not panic so that it will be much easier for you to understand the journey process.

Panicking are mostly associated to those who approaches Bitcoin investment in terms of seeing it as a quick and get rich scheme for short term profit maximization within the shortest time frame, anyone thinking about Bitcoin investment should have long term perspective hence there wouldn't be any need for panicking because you are not yet ready to sell but to keep increasing and holding and that's is the best approach because it values can appreciate over time resulting compounded value of the assets over the long term. However, anyone investing from his or her discretionary income is not meant to panic because it is assumed that the basic needs are already taken care of.

My simple advise is that if we do pay attention to how and when Bitcoin will DIP then we won't be able to invest enough into our portfolio. Those who aren't scared are the ones taking charge and purchasing quite some numbers of Bitcoin without being disturbed about any probability or declining factor.

Bitcoin isn't risky, sometimes we bring the risk to our investment like for those who would invest with capital that is not meant for investment purpose, doing such can hinder the long term approach and when raise the urgency of that funds then the investor will be forced to withdraw whatever it is without considering the fall in price, all he want is to acquire part of the investment in other to meet up with returning the money. Practices like this leading to panic isn't a likable approach when dealing with Bitcoin investment.

[_BlackStar]

-snip-

Bitcoin is a volatile digital currency and it fluctuate at any second so the matter someone study the movement, he or she can't get the accurate information on the rising and falling price of bitcoin. And what you have to know is that, bitcoin has two seasons. Bear Market season and Bull Market Season. And we have been on the rise since November 2023 and now it is above $104+k. And we don't know what price the bear market will be and that is an another prediction on it own. If you are investing then you don't have to look for the dip or the rise but DCA is good for you. And if you are trading, use the movement of the candlesticks, line and bars to check the movement, there are other tools but o don't know your comprehensive ability so you can go with that for the start.

The simple answer that can be said is that price is determined by supply and demand. When demand for bitcoin is higher than supply - then it is likely that bitcoin will rise, while conversely, the price will fall if the supply is higher than demand. Massive selling can cause prices to drop drastically - of course this is caused by an imbalance between supply and demand. The same thing also applies during large-scale buying - prices will rise drastically due to an imbalance in supply and demand.

[Sandra_hakeem]

Man, as a student, I don't know if that's the best way to put it. But I know the history of bitcoin and its big price drops, I know it's an extremely volatile asset, but I also know the long term trend is unstoppable upwards, so I don't care so much about the drops.

...if all you know is that a long term trend hits an ATH, returns beyoung limits and repeats the process overtime, without even knowing the catalyst in-between, how then do you build your hopes on hitting several more ATH's in your lifetime (as you may presume)? People have several speculations as to why alot of things happen and this ain't an exception; I learnt 75% of occurrences are affected/predetermined by previous events, which is what takes us back to Fundamental analysis.

The simple answer that can be said is that price is determined by supply and demand. When demand for bitcoin is higher than supply - then it is likely that bitcoin will rise, while conversely, the price will fall if the supply is higher than demand.

(Didn't wanna quote the last part cus it says the same thing)
We've got several other reasons why, but I'll just tell you my favourite; the news!!!  Maybe a natural disaster or something similar on the news  would affect the USD, thereby causing a reduction/surge in price.

[ancafe]

Panicking are mostly associated to those who approaches Bitcoin investment in terms of seeing it as a quick and get rich scheme for short term profit maximization within the shortest time frame, anyone thinking about Bitcoin investment should have long term perspective hence there wouldn't be any need for panicking because you are not yet ready to sell but to keep increasing and holding and that's is the best approach because it values can appreciate over time resulting compounded value of the assets over the long term. However, anyone investing from his or her discretionary income is not meant to panic because it is assumed that the basic needs are already taken care of.

For me it is okay to invest in bitcoin in a long term or short term strategy but people should start it based on the right knowledge so that there is no panic when the price starts to fall. In some capacity we will make a percentage for investing in bitcoin and usually a small percentage will be played to generate profits in the short term and the rest will be saved in the long term for the investment process that is being carried out.

Panic is half the failure and if people are unable to avoid it then the potential for loss is very high. If the price goes down then what needs to be done is to wait because bitcoin always gets a moment of recovery that will occur so that the price will strengthen again as usual.

[Faisal2202]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

BTC could drop for a number of reasons, the first reason is high selling; if everyone starts selling their BTC for profit booking, then at some point, it will drop drastically, and we will see big red candles. This is imminent, and if not now, then it will drop sooner or later.

That would be the start of the bear cycle, and that's a good point to fill our bags with BTC again to book profit in the bull cycle. I am not worried about big, dramatic drops in BTC. I am looking for opportunities to buy more already, but currently, I am waiting to book some profit once the tokens I bought make some pump in this bull run, then I will wait for the bear cycle.

[Franctoshi]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

You get worried when you don't properly understand how Bitcoin works, the bull, and bear market cycle involved, the volatility, and you go about doing investment. If you do, you should have learned to stomach the short-term price volatility and focus on your goal with Bitcoin, Meaning if you Bought Bitcoin to HODL for a long term, let's say you are holding for a period 5 years and More, then there's no need to worry about whether Bitcoin would fall or not, just relax and wait for that time to come.

[tygeade]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

There is no need to worry too much about Bitcoin's journey because you can check it on historical data and even though Bitcoin has experienced a fairly sharp decline in its journey in the market, there is always momentum for Bitcoin to rise again so that its price in the next cycle will increase. Excessive worry actually occurs because someone does not understand Bitcoin's journey so they feel panicked and worried when Bitcoin experiences a fairly sharp decline.

Forget about the decline and increase your investment responsibly so that you will see new price movements in each cycle that runs and most importantly do not panic so that it will be much easier for you to understand the journey process.

I do agree that we are going to see bitcoin to recover, whenever it falls. That's the whole point of crypto market, well to be fair most markets are like that, when there is a fall, there is a rise and that's what we should be seeing here as well. I get that some people are worried about what they have, but in the end we are going to end up with a great result without a doubt, so we shouldn't really be worried about anything.

If there is a good bull run now, then we would be happy, if there is a big bear run, we would just buy and hold and still be happy knowing that our accumulation will end up with wealth in the end. So, there is really nothing that we should be worried about, we should always consider this as normal and not really make a big deal out of this, if we can keep this going then we could definitely make a good return.

[Mahanton]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

There is no need to worry too much about Bitcoin's journey because you can check it on historical data and even though Bitcoin has experienced a fairly sharp decline in its journey in the market, there is always momentum for Bitcoin to rise again so that its price in the next cycle will increase. Excessive worry actually occurs because someone does not understand Bitcoin's journey so they feel panicked and worried when Bitcoin experiences a fairly sharp decline.

Forget about the decline and increase your investment responsibly so that you will see new price movements in each cycle that runs and most importantly do not panic so that it will be much easier for you to understand the journey process.

Panicking are mostly associated to those who approaches Bitcoin investment in terms of seeing it as a quick and get rich scheme for short term profit maximization within the shortest time frame, anyone thinking about Bitcoin investment should have long term perspective hence there wouldn't be any need for panicking because you are not yet ready to sell but to keep increasing and holding and that's is the best approach because it values can appreciate over time resulting compounded value of the assets over the long term. However, anyone investing from his or her discretionary income is not meant to panic because it is assumed that the basic needs are already taken care of.

If you are really that having that wrong perception about Bitcoin investment or just like on what been said above on which its about being a quick rich scheme then you would be having those reactions on which whenever the price do make out some small retracement or pullback, then you will be having that kind of thinking that it might go even more lower on which this will really be causing up for you to panic sell whenever it drops and will be buying out at the moment that it will be starting to pump up. This is the usual case on which most people that been trying out to do specially if they do still lack knowledge and experience towards trading or investing with Bitcoin. Whenever you hae decided on making up some investment on which it isnt really just that limited to Bitcoin but also in other things as well then it will be that proper or in should be default that you will be thinking about the proper information and be that applying with these things or ideas that you have been able to read. Drops and pumps are normal in a market because it wont be called a market if it wont really be having those ups and downs.

[Aanuoluwatofunmi]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

Drastically drop is not saying it all, because we may not understand your full intention on what the world may convey on mean to you by using it in this context, bitcoin has always been a volatile digital currency, which means you can discover some period of low or high volatility and these shocks always occur when there is an event of breaking news or when the investors are moving their assets from one point to another, so we can say bitcoin has always been falling drastically as well as rising rapidly, but when it falls, it surely rises, don't expect having the same intention as we may develop for the altcoins which some may not rises after their fall.

[Synchronice]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

I mean, how can you study something that hasn't happened? If you ask what will be the catalyst of the Bitcoin's fall, I understand. Bitcoin is a currency with one of the highest market capitalization compared to companies like Apple, Microsoft, Facebook, Twitter and so on. So, something expensive like this can't fall that easily.
I think that the only thing that can cause Bitcoin to dramatically drop will be Bitcoin ban worldwide and I think that the chance of it happening is slim to none.

If one or two countries bans, even if it's the USA, Bitcoin won't dramatically drop or it might drop but bounce back in a few months.

[coupable]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

Currently, there are no indications that this could happen anytime soon, but it remains a valid hypothesis and is likely to happen if several factors are available. Perhaps one of the most important factors that could lead to the collapse of Bitcoin is that users lose confidence in it, especially if they are able to find an alternative that can replace Bitcoin or has better features. Currently, there is no currency in the world that is able to compete with Bitcoin at all levels, but we cannot confirm that this will always happen in the future.

[Cityhunter34]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

Bitcoin price drop shouldn't be something to worry about because it will surely rebounce. It is when you sell during a price drop and you bought higher than that price that you will be in loss, but if you don't sell a dime, you are not in loss. The odd of bitcoin price going up overtime is higher than the price going down. This means that it's easy for bitcoin to reach $1m, than going to zero.

Totally agree, I think there's no need of worrying about the price of Bitcoin. Because as an investor once you start monitoring the price of Bitcoin it will going to trigger you to sell your Bitcoin when you are not supposed to sell it, while because you have already have this feeling that when the price drop that it will not go high again. which is very wrong, Just buy and hold and remove the mindset of monitoring the market price.

[summonerrk]

I hope this will never happen of course, but for who have invested capitals, it may be a question someone have answered accurately to avoid an important loss.

Currently, there are no indications that this could happen anytime soon, but it remains a valid hypothesis and is likely to happen if several factors are available. Perhaps one of the most important factors that could lead to the collapse of Bitcoin is that users lose confidence in it, especially if they are able to find an alternative that can replace Bitcoin or has better features. Currently, there is no currency in the world that is able to compete with Bitcoin at all levels, but we cannot confirm that this will always happen in the future.

The situation you are talking about has already happened more than once. I am talking about when Bitcoin Cash was created, and many said that it could replace Bitcoin, and many altcoins with fast transaction execution and cheap fees tried to replace it. But nothing happened, and Bitcoin remained digital gold. Nothing could defeat it over all these years. And even when we saw strong lags and slowdowns on the network because of Ordinals, Bitcoin was still not thrown into oblivion. It remained number one in cryptocurrencies.