Topic: What determines if a coin goes up or down in price? (Read 2197 times)

Well, we can see that with candle or some indicator as MA, BB, Pivot, RSI, MACD can helps for confirm volume buy/sell, the psychology of the trader and resistance, support line when trading.

The increase and decrease in demand for a coin determines its price.Greater the demand,higher the price.For example,just after japan announced bitcoin as legal,we noticed a great increase in demand for bitcoins and as a result,bitcoin price rose very high.If every one starts selling a coin and there is no one to buy it,then definitely that coin's price would start falling down and at last it would become zero.

You are true partially as the people will sell the price will go down and vice versa is also true for upward moment. The thing is it was natural process earlier in the time but now there are groups of people who apply this strategy altogether to benefit themselves mutually. This is however very bad practice as it makes the coin unhealthy economically and such coin tends to shut quickly.

I went little off the main question but I told you both the things that is what and who are responsible for the coins value in the market and the consequences of the same.

Supply and demand. Trading bots run by traders and exchanges, also automatically try to move the market price, but ultimately big moves only happen when real people buy or sell a coin on exchanges. 

You are a Hero member but do still ask this thing considering on your rank you should have the slightest knowledge about this stuff. Prices do move ups and down since its just a normal thing on coins in the market and yes indeed that they are somehow affected if theres a news but if theres none then the main thing that moves its price is just a simple trading with buyers and sellers because on this way we can indicate that price do really moves.Its just a simple economic class.

In fact the reasons are various: upswing/downswing in national markets, acceptance among businesses, government interference, implementation of new technical concepts, cyber attacks, and more of that kind.

This is basic problems in trading, you need know what do they need want to buy or sell this coin? What is main reason make happens?

I can say in present are 90% by the news and status SegWit of Bitcoin make the market very panic, easy to create some bullish or bearish trap by whale.

Bitcoiners determined to bitcoins because it produce cash depends upon your effort.Wheter by now its really a long time to wait for payouts but at least I have proven that I can get it.But the good news is how long my coins is store before I get my pay it is increasing.Thats why Im inspired of my co bitcoiner,that they earn a lot,wheter the price is going up and down at least I have pay to wait.

As for as bitcoin is concerned,price increases or decreases in proportion to difference in demand for bitcoin.Greater the demand,more the bitcoin price.But altcoins prices mainly decreases whenever bitcoin price increases.Most of the altcoins donot express their true value.Most of them are just pumped and dumped coins by creating fake sell orders.So altcoins should be bought with great caution.

If a coin has a specific function and has good development, then it will start out strong and probably rise in value. I think it all depends on the usefulness and how well it is publicized. Also the value is hurt if a coin is premined as well. There are so many different altcoins out there right now that it is hard for new ones to stand out from the rest.

Markets are contolled by greed and fear. If downtrend starts with panic selling it will continue till strong support line. Traders are looking for cheap prices to bump for later big dump 

Of course if everyone starts selling their coin, it would dump as buy orders will be weakend which can certainly cause dump. However, it can be recovered if the support strengthen against sell orders which always occurs in stable altcoins.

In my opinion it will not be better to say that a particular thing to be a reason of the down and up in the price because it depends upon many things .
First of all the news , if new contract news will came for the particular coin then it will get instant up because it get trp in the market and probably increase in the demand.
Second thing is the technology of the coin that attracts the people slowly slowly toward himself to buy and hold ( sia coin and stratis are better example of this ) .
Third thing is the people who spread bad and good fake news about the particular currency so that people can buy them or sell them ( fresh example of fake news about eth owner death )
And last thing is the announcement of the new technology launching ,
These are those factors which indicates that the price of the coins will surely increase for atleast once .

so you guys are telling me now right now, if you want ETH to go up for example, you definitely want btc or litecoin to go up so its related?


On shapeshift, they show the prices of


Btc, eth, xrp, ltc, etc, dash, xmr, bts, sc and waves.


Every single one shows its going down.  Last time i noticed when BTC and ETH went up, almost all the other coins go down.  I seen maybe one time that all the coins were down except 2 coins. 

Mostly the adoption among users. Go back in btc early days and you will see that it started as an experiment with limited number of users and extremely low price.
And what's now? Btc attracts more users, the price is increasing.
Sure, there is an external environment, which hinders btc from further rapid development, so sometimes its price swings as a natural response to changes. 

Yes it is correlated but in a strange way. It used to be like this: when btc started to go up, altcoins crushed. Most obvious example is the btc rise on October. Almost every altcoin went to their absolute dip. Ether was 0.007ish, LTC was 0.004ish, XRP was 400 satoshi. But it seems like this has changed. Now its like if btc goes down, all the expectations and trust on cryptocurrencies goes down, in a wierd way.

To answer OP's question, cryptocurrencies are selling dreams. They are like future markets for penny stocks, nothing else. Almost none of them has real world use, so you buy and sell expectations. So a possible adoption new with some whales playing makes the coin rise.

Like whats been said many times about trading its supply and demand. More demand but less supply is good because that will result to the price to go up. Less demand more supply then you are looking a price that will go down as there will be people trying to dispose their coins at cheaper price just to  let it go or convert their coins to fiat.

is there a correlation to all the coins all seem to be dropping recently?  Literally every coin has been dropping.  Is there a correlation with this or is this luck?

I guess you already know about supply and demand law in economics world which cause prices increase or decrease.
In crypto world, some coin really has good potential to grow up and people invest on those coins, but there are some time people want to cash out their money obviously. When huge funds withdraw from the coin, people will follow to sell and its price decrease. It is normal, a cycle in this environment which always repeated because many investors join and put huge amount of money here.

This is not wrong in theory and practical. If the coin you deal is a project coin, then you can also follow the development plan and announcements that the official team makes. So that you don't miss anything.

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.

It's crazily simple.

The amount of BTC being bought has to equal the amount being sold.  Therefore if too many people want to sell, people will only start buying to complete the trade if the sellers agree to a lower price.

It's all about competition really.

The price of a cryptocurrency is determined by ratio of demand and supply. If ratio of demand and supply is more than one than price will go up. If ratio of demand and supply is less than one then price of Bitcoin will go down. If the ratio is exactly one, then price will remain at the same level.

The things that causes a coin to go up or down in price is demand and user's trading activites of a certain coin so when a place or certain country starts using a certain currency, it goes up in price just because of demand. If one country begins to use for example bitcoin, they would buy it therefore making it's value go up and at the same time, if many peoe sells, therefore it will go down in value. Another factor that triggers a coin's price to go up and down are news and FUDs.

what you've heard is a very simplified version of the reality.
it is all about the adoption. if it grows then the price grows too.
being added to a new place doesn't increase the adoption right away, it usually is the other way around. first the adoption happens so price goes up and because of the demand for that service they add that payment. but in long run if that service is big enough (like if Amazon adds bitcoin payment) the prices will rise more because of the publicity that it brings.

So many factors can cause a coin to go up or down in price.

1. The number of people buying it or selling it
2. Favorable or unfavorable press coverage
3. It's perceived future potential, especially by big corporations
4. Governmental reactions and the number of countries who recognize and legalize it.

This, and many more reasons for rise or fall.
You should look at the big picture, not only for BTC. It's not that easy like only people using it to determinate the price.
Like, for example, bitcoin is still very fragile and every new about legalization or ban in any country is influencing the price heavily. Or the upcoming possible fork. Or some exchange scams.

The upward and downward trend of Bitcoin or any crypto currency at all moves as a result of the forces of demand and supply of that currency. When the  demand for the a particular currency is high the market value of the currency will start going up and vice versa. There can equally be up and down trend of any currency maybe as a result of either positive or negative news about the currency or international events.

I think the people who uses the bitcoin. Imagine it if all of the people are using bitcoins, i think the value is rising up. The price also have connected to the investors that invested in the bitcoin world.

I heard that if there is news that certain places will start using a certain currency, then it will increase in value.  Obviously that sounds very simple.  But that is true right?


What exactly causes a coin to go up or go down in value?  If everyone starts selling the coin, will the coin go down in value?  Im curious but what things trigger coin prices to go up or down?