Correlation between buying and selling of bitcoin: Is it a technical methodology - page 3.

sheenshane

legendary

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Merit: 1233

Quote from: Jegileman on October 09, 2023, 06:58:02 AM

..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?

Actually, there are too many factors to consider that make the Bitcoin price so volatile.
It could be this,

supply and demand in the open market
buyers, sellers, market makers, and speculators
miner
market events and media coverage like news

So in short, just because of the fixed supply of Bitcoin, the price is so volatile.
This is why the price can go up when there's more buying pressure and down when there's more selling pressure, even though the total supply remains constant.

Quote

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

No, it isn't, IMO, it's more on fundamental concepts than technical methodology.

Zaguru12

hero member

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Nothing technical it is affected by demand and supply just like some commodities like stock. It only stands out because of its fixed supply limit and this as it grows will only causes scarcity which increase its demand and then increases its price.

When many people buy the demand for it has increase so the market just increases it prices and same goes as when people starts to sell off. Just thing of your agricultural produce when they are scarce in spring time how they go up in price and when they are abundance in winter how they fall in price

_act_

legendary

Activity: 1064

Merit: 1298

Lightning network is good with small amount of BTC

Marketcap = bitcoin price x circulating supply

Bitcoin price = marketcap ÷ the circulating supply.

From the calculation, you can see how marketcap is proportional to the price.

The more people buy bitcoin, the marketcap increases which is directly proportional to the the price. The more people sell bitcoin, the marketcap decreases which is directly proportional to the the price.

Jegileman

sr. member

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Merit: 250

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.

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