Weakening of thinking when the market changes suddenly.

[Mpamaegbu]

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

Everyone has a reason for whatever they do, whether it makes sense or not to the other person. Now to the issue at hand, at every point of buy, there must be those willing to sell. That's what makes a healthy market. Besides, we've to realize that people have their different entry points and we should also expect that they should've their different exit points. As for whether they sell because their, "thinking is weakening" is what we may not know. Again, and more importantly, we know that those who give Bitcoin (or any other) its value aren't those who hodl but those who engage in buying and selling. Until something is offered to the market, we won't know its value. Yes, agreed, we may not like what sellers do to price but that's a reality of life. Nothing goes up forever.

[ScamViruS]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

Those who panic because the market is going down and start selling their Bitcoin are actually buying Bitcoin unplanned because they don't know how long they have to hold Bitcoin. Their decisions change depending on how much volatility there is in the market. Since they tend to make decisions based on market movements, they are easily led to make wrong decisions.

We have seen in the past how panic selling occurred when the market was dumping. Those panic sellers started to regret it again when Bitcoin hit a new ATH, it is possible that they panic bought again at the top. So when buying Bitcoin, you should definitely have more options so that you can deal with the situation if the market dumps badly.

[Franklyn-wood]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

Why sell? Don't sell? Keep holding...all these words are very easy to say and write but to those that are real holders, they don't worry there selves about what people think about the market. They will hold if they like and they will sell if they like. All depends on why they are holding. Some people are short term holders why some are long term holders so you can not blame them on the terms of their holdings. You have the liberty to sell, rebuy, and do what you like without anyone questioning you but it rather pays to hold than to sell and looking for ways to resell.

[dezoel]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

Even I have been expecting November to show some bullish growth if we consider the previous charts but that definitely did not happen so I think it is a bit difficult for bitcoins to follow the previous trends. In recent times, we have tested $91k mark which was one of the good thing to have so I think the trends did reset and now we might find different trends coming forward. I do not think we have to wait until the new year to have another bull run.

Next few days we might end up being bearish but this will soon revert if we hear any positive news from the institutions and governments. I am sure that few more US states to start accumulating bitcoins for their SBR. I mean to say that we need a trigger which may come from governments this time.

[Kelvinid]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

Those who sell bitcoin when there is price sharp decline are only those newbies who get panic easily. But for those who have been hodling their coins for years, they won't be tempted to sell but will only be wanting to buy and hold more.

What's happening in the market is not new anymore, so why should we panic? Bitcoin price will eventually recover, that's why we have to be patient while waiting for it instead of turning into panic selling and regret after due to a huge loss.

[Marvell1]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

What I like most about the crypto market is that, as many people are selling their Bitcoin out of panic, there are people who understand the market, ready to invest in Bitcoin as it declines. They are happy about it, and they want the Bitcoin price to drop more so that they can accumulate Bitcoin at a good price and make big profits when it skyrockets.

OP, think of both sides, the reaction of people when the Bitcoin price drops, because some sell and buy Bitcoin when the price drops. They are okay with their action

That doesn’t only happen in the crypto market, it happens in every financial market. Whether it is a bear market or a bull market, buying and selling are always happening, and that is how the financial markets work.

Sometimes these drops aren’t even due to supply and demand, they’re simply the result manipulation from the market maker. They cause panic, and weak hands will sell while they and the diamond hands will buy regardless.


Furthermore, the market includes not only long-term investors but also traders and speculators. Just because we see a lot of sell orders doesn't mean holders are panic selling. Most of them are short positions opened by traders to create selling pressure.

[henmark]

all these words are very easy to say and write but to those that are real holders, they don't worry there selves about what people think about the market. They will hold if they like and they will sell if they like. All depends on why they are holding. Some people are short term holders why some are long term holders so you can not blame them on the terms of their holdings. You have the liberty to sell, rebuy, and do what you like without anyone questioning you but it rather pays to hold than to sell and looking for ways to resell.

I bet there are supposed to be long-term holders but sell unexpectedly. This is usually the cause of lack of faith or preparation. But yeah, at the end of the day, that was their money. Then there are just people that doesn't ran out of topic and they like to talk about the lives of other people. We still can avoid them if we won't get out of our house, or let other people know of what we are up to. Same goes if we don't go on online communities. That is we are a sensitive type.

Those who sell bitcoin when there is price sharp decline are only those newbies who get panic easily. But for those who have been hodling their coins for years, they won't be tempted to sell but will only be wanting to buy and hold more.

I think there are experienced people that does that. It is their way to cut a loss or they did not lose at all because their buying range is still lower than the drop point. Yes, BTC value can recover but we only don't know when it happens. It is possible that it may take time or maybe next year, if things don't go well, and some just not have the same patience as the others. This is the reason why they choose to sell. It is only their problem if they ended up losing.

[capokmerah]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

Bitcoin’s volatility is extreme, so it’s normal for people to react differently. HODLing works for those who believe in the fundamentals and can handle large price swings. But many people sell when the price drops because of fear of bigger losses, lack of understanding of the market, needing liquidity, or simply having a short-term strategy.

So selling during a dip isn’t always a sign of “weak mentality”, it’s often just a difference in risk tolerance and investment goals. What matters most is having a clear strategy and not following market panic.

[Ziskinberg]

Holding only becomes a good solution if you know what it takes to be real holder, thus capable enough both mentally and emotionally. However, selling at a loss price may be a  form of stupidity but selling at a short-term instead of holding may depend on individual's preference on his investment. But regardless if he sell short term or long term, as long as he sell for profits, that's already a wise and profitable decision.

Moreover, those who sell when the price drops may not be a wise move, but there are actually investors who are not capable to hold successfully, as investors do not come here just to hold, but most likely to find quick profits even if it could mean some portion of losses.

[coolcoinz]

The 2 most common reasons to sell in panic, at least from my experience are being on the negative and speculation.
The first reason is pretty simple. People flip a switch when they suddenly see the investment as unprofitable. You bought spending $10k and you suddenly see that at this market price you only have 8 - most people are going to panic and it's completely normal. They fell like losers at that moment and want to take the loss and move on before it becomes a much bigger loss.

The second group of people will sell to buy back at lower price. They think they can time the market and are willing to gamble a bit. I can also understand them, especially if they have secured some profit already. Imagine that you bought spending $10k, held and now have 15, but the price is moving down, so you might see 14 tomorrow, you will secure at least that initial 10k an hold the 5k you have in profit. Worst case scenario you sill lose some of that, but it's also possible that you will buy back more in a month or two.

[Powerjumboo]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

In fact, new investors who have not gained much experience in investing, due to which they become crazy to sell their investments when the price of Bitcoin drops. However, every investor must know while investing in Bitcoin that Bitcoin is completely volatile and this volatility is why Bitcoin is so popular. However, long-term investment definitely brings a lot of success in investment. If someone wants to invest, then his goal should be to hold it for the long term.

[Accardo]

The moves differs, hodl is the general term for tough market changes but risk management for everyone isn't the same. They are those who would switch to usdt to buy at a lower price if the dip continues. While other can't stand the panic to sell, a lot more bought at a bullish rate and they have no other way to deal with the speed at which they're losing money other than selling all the coins at a loss.

[jaberwock]

People may have some different emotional feelings and may fail to think clearly when they see the market changing drastically, that doesn't mean that we should be all deserving this, doesn't mean it works very well. I think it's clear that some people feel this way and that's okay, but we have to realize that this isn't really what we need, not what we want.

I think that we are going to see this become the best there is, it's the thing that makes it a lot worse. For that purposes we should let those people be, sure they may make a mistake but it's hard to just be critical of them each time, every person has a way to learn, they will make a mistake but they will learn from it eventually and do better in the future.

[Asiska02]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

People sell because of fear of losing it all. They mostly sell because they don’t have a prepared mind to deal with the market volatile nature, so they immediately panic to sell when they see the market crashing. Another reason is short term plans, bitcoin is not to be invested for short term goals, when you do so, you’ll be forced to sell at loss when the market come crashing at the time you want to take profit from the market and use the money urgently.

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

Lack of proper understanding of the market can cause that, so they lack knowledge of the market, which makes them rush to sell and yes their thinking is weakening as they lack the right knowledge to take on the market with. In anything you’re investing into, make sure you have sufficient knowledge about it in order to not make mistakes that will make you lose a lot or everything in the market.

[Zigabel]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

The sell when price drops is not because they perceive Bitcoin to be weakening, I believe it is mostly because they are trying to maximise profits and reduce losses as much as possible, so it is mostly a case of them trying not to get caught up in the further decline they get to experience with the market moving forward.  One thing you get to see that if price is crashing and ut goes below the point at which you bought, you will most likely be at a loss and so it is only advisable to sell of before that time, so you will still have a little profit and your capital intact.

If you had sold before your entry point is been broken lower, you can re enter or rebuy when the price has fallen fat below your entry, so at that point, you get the chance to make more profit when the price retraces in the buy direction. Bitcoin has one very known move and that is a cumulative of an upwards/bullish move, so even when price falls you have that assurance it will come back up someday but if only you are patient enough.

[Ishicryptic]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

They are called weak hands, they panic and sell when price dip, they will fear that Bitcoin will crash, smart investors will buy up and price will rally again, they are part of the reason why there is pump and dump in the market. Whales usually take advantage of these weak hands, they will dump a reasonable chunk of their stash and it will cause panic for the weak who will offload Bitcoin into the market. When price crash the whales will buy back their stash at a lower price, they make profit and wait for another opportunity to repeat the circle again. Except you must sell your Bitcoin to take care of unavoidable responsibilities there is no need to sell when Bitcoin dip.

[Sammye3]

Many people don't understand the concept of Bitcoin before investing, because you don't expect an asset to only show greens and not reds, it's only normal for retracements to occur so why the panic when price drops?

So I would say it's lack of understanding and strategic planning towards Bitcoin investment. As the price drops there are still people who take it as an opportunity to buy more for the wait of a reversal. Only people who fear for loss of their money would panic sell and end up in regrets in the future.

To hold an asset for long term, you need lots of emotional strength, endurance and patience because you would be going through smooth and rough patches along the way and developing the ability to withstand those rough periods should be the priority for long term holders.

[palle11]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

You are asking the simplest question of why people sell their bitcoin during bear and there are different reasons for that. If you have bought bitcoin for a long time hodl, you may not be quick to sell, you will still hodl because you know it will return to bull correction. Buying for short time is the reason that people will sell at any small downward trend. So they sell to cash out on their already made profit and to buy again from buttom for maximum profit.

They also sell because they need cash and won't won't like to wait for the value to drop drastically. For newbies, I believe they are scared that the price may drop to the extent it can't recover. So they panic and sell.

[SOKO-DEKE]

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

There are several reasons why individuals sell their Bitcoin when the price drop.One of the reasons is that some people panic, unsure whether the price of Bitcoin will recover again or not.Another point is that some people sell their Bitcoin during a price drop because it is a moment for them to reflect on wrong steps they may have taken such as investing money they needed soon. Since they feel they have no other option, they are forced to sell their Bitcoin, and this is often caused by a lack of proper knowledge.

Another reason why some people sell when the Bitcoin price drops is that they have reached a point where they want to take their profits. When they see the price falling, they think selling is the best choice for that period. They may also believe the drop will continue, since Bitcoin is unpredictable.

[shinratensei_]

Looking at the Bitcoin market, the price can rise sharply and fall rapidly. But why should we panic? Isn't Hold good solution? Why sell?

I've thought about this several times. Many people sell Bitcoin when the price drops. Is it because their thinking is weakening?

It's because they're engulfed in fear and make irrational decision. Dip should be the best time to buy but they are doing the opposite. The exact reason why people buy when they see pump so high they might as well be late already.
Emotion is hard to control and emotion is the thing that make irrational decision like this. If you see the chart, in a huge dip there's always steady recovery and in a huge rally there is always correction which goes against the emotion and fear. If you are long term holder, best action is to just ignore it and stick to your target.