How is the bitcoin price decreasing during bear market

mk4

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Quote from: Oshosondy on March 24, 2021, 10:50:25 AM

I think I get you rightly, if there are few people selling and less than the people that are buying, that means the price of the coin will increase,

Yes, something like that.

Quote from: Oshosondy on March 24, 2021, 10:50:25 AM

but in case the sellers are increasing while only few people are buying, sellers will not have option than to sell at low price because no much buyer for it, this will lead the bear market.

Yes. Though it's not that they "have no option than to sell at low price" because they can always choose to not sell and just hold instead, but most of the time continuous price drops are also fueled and cause a lot of panic, so yes.

Yogee

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Quote from: Oshosondy on March 24, 2021, 05:39:11 AM

.....I think exchanges link buyers and sellers together in a way people that will buy will buy bitcoin from people that will sell, but certainly this will just let the value of bitcoin not to increase or decrease.

It will not increase or decrease if all sellers and buyers will agree at a fix price for BTC like $55,000 for example.
It will increase if buyers are willing to purchase at $56K and sellers will deviate from the fixed price.
It will decrease if buyers will only buy at $54K and sellers are willing to dispose at that price.

I hope that's clear enough.

Quote from: mk4 on March 24, 2021, 08:31:46 AM

Quote from: Oshosondy on March 24, 2021, 05:39:11 AM

The question is, if I sell bitcoin on exchnges, it does not necessarily means someone will buy it, if someone do not buy it but it is sold, that means it will be converted into fiat and the main reason for decrease in bitcoin price during bear market when the price of bitcoin and many others cryptocurrencies are falling?

Uh, no. If you sold bitcoin on and exchange at whatever price and your sell offer ends up executing, then someone bought your bitcoin. Your coins won't be "sold" if no one buys it, because how will it be considered "sold" if no one buys it in the first place?

The exchange is already in all sorts of trouble if your sell order was "sold" without anyone actually buying it hehe. That would a bug that they should fix as quickly as possible.

Oshosondy

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Quote from: mk4 on March 24, 2021, 08:31:46 AM

The price of bitcoin and cryptocurrencies in general fall at bear markets simply because a lot of people are selling their bitcoin to other people. That's pretty much just it. It's just that the price goes down because there are far more sellers than buyers.

I think I get you rightly, if there are few people selling and less than the people that are buying, that means the price of the coin will increase, but in case the sellers are increasing while only few people are buying, sellers will not have option than to sell at low price because no much buyer for it, this will lead the bear market.

Pmalek

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You have to understand that if the market cap of an asset like Bitcoin increases by a certain amount, it doesn't mean that the new change is money that's been invested into it. If you notice that the market cap is X million/billion times larger than yesterday, investors haven't necessarily bought bitcoins for that difference. It can very well be that investors are signaling their interest in doing that by placing buy orders.

It's the same thing when the total market cap decreases. A $20 million decrease doesn't have to mean that people exchanged $20 million worth of bitcoins for fiat or other assets. A part of that are sell orders that haven't been filled yet. You see the same during bear markets. People panicking and placing sell orders that drop the price and the coin's value.

mk4

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Quote from: Oshosondy on March 24, 2021, 05:39:11 AM

The question is, if I sell bitcoin on exchnges, it does not necessarily means someone will buy it, if someone do not buy it but it is sold, that means it will be converted into fiat and the main reason for decrease in bitcoin price during bear market when the price of bitcoin and many others cryptocurrencies are falling?

Uh, no. If you sold bitcoin on and exchange at whatever price and your sell offer ends up executing, then someone bought your bitcoin. Your coins won't be "sold" if no one buys it, because how will it be considered "sold" if no one buys it in the first place?

The price of bitcoin and cryptocurrencies in general fall at bear markets simply because a lot of people are selling their bitcoin to other people. That's pretty much just it. It's just that the price goes down because there are far more sellers than buyers.

vintages

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In other assets, the bear market may decline by at least 20% from a recent high price. However, in bitcoin's case, it can fall as low as 24%, at least we notice this in January and it's because Bitcoin is by far one of the best assets as of now.

So, you almost answered your own question. If Bitcoin is in a bearish market, there is every certainty that the price will continue to fall because the majority of the traders are mostly being controlled by market movement. This is what the bear market is all about, and it stops when there is a major pump. We can't expect a bullish market in a bearish market.

Caross

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The bitcoin market have a decentralized settings in that way every bitcoin holder exchange has the right to set the price to what ever amount is desired and when an order is placed on the exchange e.g buy/sell order it is left for the system to match the order to a specific order that match the price the seller set and when that is done the order will be processed. And what result into dump is when a large sell order. if a sell order is set below the previous sold price it forces the market to drop and if that continues the buyers will keep reducing their buy order price constantly until the market regains it self, if not the dump continues.
Hope this meet your expectations any ways.

Oshosondy

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I understand little about what controls the price of bitcoin, that is not the question of today. But I am thinking how the price is decreasing when altcoins are decreasing too. Let us assume that bitcoin is not sold for altcoins but to fiat directly.

I think exchanges link buyers and sellers together in a way people that will buy will buy bitcoin from people that will sell, but certainly this will just let the value of bitcoin not to increase or decrease.

The question is, if I sell bitcoin on exchnges, it does not necessarily means someone will buy it, if someone do not buy it but it is sold, that means it will be converted into fiat and the main reason for decrease in bitcoin price during bear market when the price of bitcoin and many others cryptocurrencies are falling?

Topic: How is the bitcoin price decreasing during bear market (Read 154 times)