Topic: Is there a pattern when there is a dump like this? - page 5. (Read 638 times)
This is not nonsense, but it is a fact of how trading is done. If people knew when the dump happened, then maybe they wouldn't decide to hold all their bitcoin but take profit before the dump happen. This also happen when the price is going to rise so that both are difficult to get an indication. Strong fundamental will usually make people buy more because the price may go up, while negative news can also increase the the number of bitcoin being sold.
The pattern here is "lower highs and lower lows", which means there's a bear market. After each decline, the price failed to return to the previous tops or surpass them, which means that bulls have lost momentum. Just like the price doesn't smoothly go up in bull run, it doesn't smoothly go down in a bear market, so this is really a very basic pattern.
To be honest, it is difficult to identify when we will dump.
Some are basing on fundamental analysis like there is new negative news about Bitcoin or FUD, or some big personality having statements about Bitcoin.
And the huge possibility is the whales in the market, where they are capable to make the price of Bitcoin move in a huge percentage.
Another thing too is a technical analysis using different tools, like analyzing the volume, momentum indicator, open interests, etc.
Some are basing on fundamental analysis like there is new negative news about Bitcoin or FUD, or some big personality having statements about Bitcoin.
And the huge possibility is the whales in the market, where they are capable to make the price of Bitcoin move in a huge percentage.
Another thing too is a technical analysis using different tools, like analyzing the volume, momentum indicator, open interests, etc.
Question: What's a good indication that the dump has stopped and it's at its lowest before prices start increasing? Any pattern in this regard?
There is no clear indication. Often it is a bear or bull trap. Moreover, from technical analysis, there are hardly any indicators that work well in crypto and show an end of a dump. One should pay much more attention to the news. Currently, dumping is taking place as China continues to get serious with its crackdown on cryptocurrencies. That is the main reason. Crypto is extremely news-driven, so this should be one's first point of reference to determine if a dump can still continue or has reached its end.
Prices dive, it's a straight decline, and then the decline slows down, and then it hovers around where it stops declining, and then suddenly it shoots up but not quite to where it declined from but rather at about %50 of the way, and then it suddenly declines to where it'd stopped declining, and then it hovers around there (+/- %1-5)...rinse, repeat.
Would you say the above is the usual "pattern", how would you change it?
Question: What's a good indication that the dump has stopped and it's at its lowest before prices start increasing? Any pattern in this regard?
Last time there was a dump (when Elon announced that Tesla would no longer accept btc), the decline stopped for a while, at around 53k. But then, for no apparent reason, it dived again, drastically, where it has since remained (until recently with this China bank news).
So the question is, has this happened before...where the dump ceases, starts going up a little (so you think it's a good time to buy as you take that as an indication that the decline has stopped because prices are rising), but then it suddenly dumps again?
Or is the whole thing a complete crap shoot?
Would you say the above is the usual "pattern", how would you change it?
Question: What's a good indication that the dump has stopped and it's at its lowest before prices start increasing? Any pattern in this regard?
Last time there was a dump (when Elon announced that Tesla would no longer accept btc), the decline stopped for a while, at around 53k. But then, for no apparent reason, it dived again, drastically, where it has since remained (until recently with this China bank news).
So the question is, has this happened before...where the dump ceases, starts going up a little (so you think it's a good time to buy as you take that as an indication that the decline has stopped because prices are rising), but then it suddenly dumps again?
Or is the whole thing a complete crap shoot?
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