Topic: What causes the sudden surge of market? - page 2. (Read 561 times)

we are in the crypto world and for the years that we have had since the existence of bitcoin a lesson we have to learn: one should never rely on the analyses and opinions of these analysts and the news channels. Today the price fell below  $5000, it will not take long for all news channels to talk about this price fall and make their assumptions about the reasons for this price decrease

I hope this is not only for the mean time, if we think like that we are expecting that bitcoin will dump again.
I will remain optimistic, I will have to stand on what I believe and I believe that this is the beginning of bull run if it's not yet.
We might have different judgement but we will know going forward on what will be the next price movement.

Nobody knows the actual reason of this sudden pump of the market, so there are many conspiracy theories have cooked up, but i believe some sort of manipulation has happened for sure.

I agree, theres a huge possibility that there is a huge whale who purchase a lot of bitcoin that could have triggered the sudden surge. At least theres a reason for us traders to be happy for the mean time.

We are in cryptoworld that everything is unpredictable just always remember the pump and dump situation meaning every momentum can be change. Just take a look at the price of bitcoin its suddenly dump after a huge increased happen in tha past few days.
No need to worried after all you need tobe positive all the time.

the sudden changes are always happened to cryptocurrency is normal but it needed to be more positive then only the profit are always being standard here but in recent times there is no big development and happened but from the starting of this month we will see a few changes in this market if it is continuous we will be success at the end in this year.

unexpected things are always happen to the Crypto field it is common in this Crypto market but we have to wait for sometime to pick the next thing about the Crypto development and we need to make this opportunity more useful than only the success is always come everyone to make their life properly.

Even now, the crypto exchange rates can be influenced by rumors and assumptions. On top of that, many of the traders are quite young (in their 20s and 30s), and they don't shy away from taking risky moves.

See dude first you need to know about the thing that what is pump and dump.
Secondly you need to make sure that you understand all the factors that led to the rise of a particular coin.
A coin's price rises when more investors invest in it. I mean when the trade volume is more or in other words when the coin is most purchased by many traders.
This make the supply of the coin less as per the demand and this make to the rise of the price of that coin.
So these are the factors that causes the sudden surge of market.

I am not sure about that, but it could be because we don't know if the whales still trying to dump again. I think the same as you, and we have a great chance to see the bull market will happen in this year or the next year. Just hope that the bear market will be over soon so we could start to make a big profit again. But don't forget that the bear market still appears in the market, so you need to be careful.

I think we can shorten it by saying "there was a lot of people selling at 4200, we tried to buy them all but failed many times, however each time we tried the resistance eroded, last time we tried we broke it and went higher". That is the clearest explanation that can be given, its both a technically analysis stand point that the resistance level is explained but it is also a very simple terms that anyone could understand, that way we are explaining TA like we are talking to a small child.

I mean that is what happened honestly, when you try to break a number and fail you either go down a lot or you go back up and try again, we went to 4200 multiple times but we went back up, now it is time to break the next level by trying to buy as much as we can, maybe go back down for couple of times but each time we reach the next resistance we ease it a bit.

You are all that are always thinking that China has so much influence in Bitcoin price should really stop. China is just a country that have citizens interested in cryptocurreny just like every other country.
Every actions they take don't have major impact on Bitcoin price. Whether they shut down an exchange or open an exchange, it won't be affecting Bitcoin and also same to other countries. Price of Bitcoin can be affected by market activities, adoptions and circulation.

Are we thinking that this is the creations of whales and it may back to dump again. But I've never think like that cause I believe that this year will be the opposite of last year trend. We speculate to have a bull later part last year but it never shows instead it getting worst. And for now, it have shows again and even proven that crypto could still resist from the bear season and rise up.

In my own opinion I want to say this pump is normal according to previous market history. We saw more than couple of history like this.

I think btc struggled  long time around 3000$-4000$. And many whales waited for dip entry. But now a days btc already passed the limit of struggle and many good news coming day by day about crypto currency. For that reason whales did not want to miss the dip entry. So they already started to invest their money and btc started to growing up. It is my personal opinion so can not match any technical analysis. Thanks 

I think that $100m is enough to act as a catalyst when people are waiting for years to invest on bitcoins at right time so when they see the price rise they are not going to miss that opportunity either to make short term or long term profits.

This is the cause of the pump. And that event made 3 orders from 3 different exchange 7,000 bitcoin buy order each. It's just a manipulation by whales. I don't even know if the manipulator were a whale or whales. I think it's just one but he used different exchanges.

I don't know if you have read news reports last week saying that there someone who bought bitcoins in millions in three crypto trading simultaneous, pushing the price +$1000 in matter of minutes. Probably just whales trying to wake up the market but definitely the entity will book the profit one time or another. If was a massive 20% increased in the last week and the entity might be slowly shorting it, we don't know, but I'm not sold on the premise that this is institutional money.

I have read some threads too since the price increase and I have not seem to see someone giving precise reason for the move. I take it like volatility is part of bitcoin. If the whales made a huge order, I'm sure by now, price should have dropped because it is not a teal price move.

There are difficult to search for the solid facts of the pump in the market in these few days. The market increase and didn't telling us what is going on with the market, all we know that the price can jump to the higher price in less than 2 weeks. And in a few hours ago, we are seeing the red candle happening, and now the green candle come and change the red candle, and it's happening again in the market. The trend is back to the uptrend and the price come back to $5000 again.

Its pure technical.



That formation is well known in crypto on every time frames.

How it works? And why that happened?

From the end of November bitcoin was in 3200-4200 consolidation. For four months on medium volume traders was trading without realising waste/profit waiting for move. Majority of traders that opened their long position set stoploss around 3100, all who opened short position set stoploss around 4200 (based on supports and resistance from AT). For four months amount of unrealised stoplosses was growing. It was like a
ticking bomb. Stoplosses was only tip of iceberg. There were 500 mil worth overleveraged shorts (only on bitmex -https://cryptopotato.com/500m-usd-of-liquidated-short-positions-bitmex-responds-to-the-futures-auto-deleveraging-events/) that was liquidated during this pump pumping price even further.

The fuse was fired. Price crossed 4200 resistance. Let's summarize who is on market currently:

Demand:
1- TA traders buying due to TA buy signal (breaking resistance)
2- stoplosses on shorts
That push price sharply
3- overleveraged shorts get liquidated
that push price even further
4-more and more stoplosses and liquidations fired one by one at higher and higher prices

Supply:

Almost none. The Closest resistance is around 5400. Why sell earlier? Would you do that?

what happens if there are many buyers and the lack of sellers? Price surge... and that's what happened.


That's the stupidest thing you might say. Do you even know how bitcoin mining works? Supply is always the same. No matter if there are bunch of mining factories or 1 single PC handling whole network.