What might be the reason for the bitcoin price dropping from $ 20,000 to the present price? What do you think about?
TLDR: We got too far off of moving averages and whales/institutional money quit participating and only sold.. when it tipped over.. they didn't come to help or save it to buy lower.
The real reason is captured in chart fundamental analysis...
What happens with any stock or coin is you start to move away from institutional money (way off of the moving averages, 50 day, 100 day, 200 day on daily charts) and you're only relying on new money to prop you up. Institutional money doesn't go chasing new highs, they know its safer investments to trade within what is tried and tested waters and don't want to participate at all (except to sell). New buyers carry the fomo but the fumes will eventually burnout and when it tips over it has nowhere to fall to.
Its also why you want slow growth on something.. when something slowly grows you grind out major support/resistance areas that need to be tested for investors to decide whether its the right time to buy or sell. When you go on a huge runup and it eventually tips over based off of bears winning out with larger institutional players taking profit or whales move over to USDT.. you have nowhere to safely fall to.. so when the panic or fud sets in.. institutional players STILL don't participate to get it at a lower price, new investors fun into panic selling, and you pile that with larger players taking positions to short.
Alot of people confuse oppurtunity as panic.. its not that large players have no interest in participating in bitcoin in the 8000-10000 range, the question should be why would they if they can buy it cheaper?
Lots of times the news/fud has very little to do with price dropping.. its mainly people reacting to the price changing then looking for a reason to attach to why the price is dropping as a justification (its just hard to accept that the market's being manipulated in something they love when it for sure is).
My biggest concern is when predicting the ceiling (someone who hodls and doesn't participate in the position trades) is what "can" it reach? If you can make something go from 5k to 20k back to 5k back to 20k.. would you really be interested in seeing it go to 100k? Thats really the biggest question here, is what play will give the institutional players/whales in this space the most money.. and I'm just not overly convinced that going straight to 6 figures is the right answer.
Anyways, just my 2 cents.
