Topic: What determines if a coin goes up or down in price? - page 2. (Read 2134 times)

that the main reason which cause the price of bitcon to increase is the interest of the people, if people are interested in bitcoin, then the demand is increase  which cause the supply decrease. and therefore people even start buying bitcoin at high price. they know that the price of bitcoin has still too much potential and its price can go more high. therefore they are not feeling hesitation about the price of bitcoin and hope that its price will continue increasing for a long time.

The reason why the coins goes up or down in price is because of the trader or the users who are selling or buying some coins,
It is basically because of the stock's and demands of the coin the simplest rule in trading.

But we cannot erase the fact that there are certain fuds help for bitcoins price reached and also there's an historical event happened thats why we can see the price stretch for more and im so wondering on how things would go for it since the adoption of it keeps spreading and it tells that demands would be rising to. But what if theirs bad events would be happen? I think those people who have balance would start to sell at that could cause downfall to the price.

It is quite simple, isn't it. If the demand is high enough, then the prices will increase. Now if you ask me what triggers this demand, then it gets more difficult. Increase in the number of users can be one reason. Another reason can be investment by the big players. But the most important trigger can be increase in the number of exchanges and shopping sites which accept this coin.

Only news and big whales' decision. We all know how powerful does news in trading so it can help us to know when to buy/sell. Also, whale decsion when to buy/sell gives an impact in crypto currency. For this reason, we have to know the pattern they do in their ways.

The higer number of people using it generates a higher demand for btc which i think causes the price to shoot up. Consider the fast popularity of bitcoin now and a couple of years back. Now that a lot of people arw aware and have delved into btc, we're steady at a price around 2.5k which is way higher than the average price last year

Yes it is true that the current factor becomes positive for bitcoin price movement. When there is a country that receives bitcoin then bitcoin prices will increase. Besides that the increasing demand factor can make bitcoin price increase. Because then the more bitcoin is used and also the increasing place / store that receives bitcoin can affect.

In a past life I used to dabble in statistical arbitrage and high frequency trading for equities and futures at Wall Street firms.  These roughly translate to medium term (~days) to ultra short term (~minutes) trading horizons.

Trading BTC (or ETH, or LTC, etc.) has a lot of differences with the products I used to trade there, as they are inherently dissimilar products.  But since many crypto exchanges have similar market microstructures, both traditional and crypto assets can move in comparable ways.

Allow me to chime in with my perspective: trading, at any horizon, is a battle of the supply side and the demand side.  At very short horizons, more of the actual supply and actual demand is displayed on the order book, so high frequency traders can utilize short term price prediction signals to make pretty good predictions just by looking at the posted orders on an exchange and writing some function of them (commonly called an alpha signal).  A very simple alpha like taking a log ratio of the bid side divided by the ask side will have very high predictability.

As you move to longer time horizons, more and more of the "actual" supply and demand is undisplayed.  This is either because traders choose to withhold part of it -- they may only post, say, 10% of a giant order, afraid to move the market if they post more -- or they haven't decided to trade yet (i.e. uncertainty).  The price prediction game then becomes how to either figure out what traders' current withholdings are, by for example analyzing any patterns they may have in releasing parts of their giant order; or attempting to ascertain what uncertainties exist, and how market participants will react to these when this new information is released.  Most longer term price prediction models are centered on one or the other in some implicit fashion.

Hopefully this line of thinking will assist you in developing your trading philosophies.  Happy to discuss.

The value of a cryptocurrency is determined by how usable it is (how widely it can be spent), how good the technology is, rate of adoption, legal status, etc.

The price of a cryptocurrency is not determined by its value.

The crypto market is extremely inefficient. Prices are determined by investor psychology... mostly buying and selling manias. Bitcoin price is slightly driven by value, which in turn drives the prices of other cryptocurrencies, but it takes a very, very long time for price and value to match up with one another, if they ever even do. Value is difficult to determine and everyone thinks the dollar value of bitcoin is different.

Basically the primary factor driving the price of any crypto coin is investor psychology. The intrinsic value of the coin has very little to do with its price.

The really reason why price move up or down is because of the force of demands and supplies. What influence the forces of demand and supply is fundamental issues and market action. Traders trade based on this two fundamental reality.

The real cause of the increase in price might be linked to such news but not totally because the news does not take effect automatically and even when the news break sometimes we see reverse in the price and that can be likened to what is being faced now. For me, I think there are some artificial forces that still influence price through various collaborations as we have it in alts, there is a possibility its happening to bitcoin as well.

There are 3 groups of people controlling and influencing everything in the market.

1: Major investors-companies(whales).
2: Governments and their agencies-banks and organizations working for both governments and banks.
3: Normal community members-random individuals.

News is a big factor whether the price will go up or down. Supply and demand should also consider. I trade coins when i see high volume in it. High volume bad news, FUD everywhere, people want it dump. Positive news the price goes up. I only hold very few alts for long term as i mostly do day trade. 

Supply and Demand are the major things which trigger the price to rise at the beginning. After that if the coin gets recognized then there will be lots of factors on which the price will be increased and decreased. Even News have a great impact on the price, I guess you have heard about Panic selling situations and mass buying.

The number one factor that triggers fluctuations in price is supply and demand, however some factors affect pricing are coin system improvements, segwit, events etc. may influence cryptocurrency prices.

The supply to the demand is the one that predicts the price pumping and dumping. This in turn gets related to the platform in which the concern coin is functioning along with the trading volume and distribution on different exchnages.

The fluctuation of a coin is being cause of its stock's and demands,
As the demands rises the stock's would increase it's price so I think that's how it works.

I was originally thinking the price will always move when some event running or some development announce to public and let the media spread its word. But after one year doing regular bitcoin trading, I am sure most of the prices moves is effected by speculation.
When some people holding +-250 btc, it's​ really can make a different when they do something​ with their btc. Just follow the whales, and you'll​ get something to survive.

The law of supply and demand - which is simply stated in item number 1. The price of a coin goes up when the demand for it goes up. The demand goes up, when there are uses for the coin like say, a really good and reputable online store accepts the coin as payment for their goods or services. Customers who have that coin would prefer to use it than use a credit card maybe or make a fiat deposit. So if there are lots of online retail stores that will accept that coin, the demand for that coin increases, and so will its value   But if otherwise, the the inverse will happen. No use for the coin or no perceived potential use, then the demand for that coin will drop, and you'll see this when dumping happens, and this in effect, causes the price to dip.

If press coverage is favorable, it's like marketing - it helps boost a product's value. So people get into the hype and boosts price. When news is bad, people tend to panic sell and then prices go down. But it doesn't seem to work much with bitcoin. Good or bad news these days doesn't affect price so much so with bitcoin, I suppose a bad event in the blockchain will make prices dip. Other than that, it's still going strong.

Yes it can. News is very important to consider what to trade. I just want to add, chart analysis is also helpful to know when does the price of a coin will pump. Knowing when to pump is not simple since huge traders don't have the same mind set thus you have to really analyze everything carefully.