Topic: What is going on, who is selling at these prices? (Read 2094 times)

Well the fact is that the Chinese people are dumping because there are mostly coming some regulations what is bad for them.

Thank you for that, I am learning about BTC pricing

If Bitcoin's own value doesn't change, its price will depend mechanistically (like in a knee-jerk reaction) on the USD/CNY exchange rate, since Bitcoin is largely traded for these two currencies (and consequently priced in). So, if the dollar goes up against the Yuan, the Bitcoin price in dollars will evidently go down. But given that Bitcoin volatility by far exceeds the changes in the USD/CNY exchange rates (let alone changes in the USDX index), Bitcoin price is determined more by market manipulation than the value of the US dollar itself (which was your point), and that could play any way...

Regarding 600 dollars per bitcoin, this is a possibility but surely not due to dollar appreciation in the range of only a few percentages

Indeed not smart at all, they can better wait on a better price that is coming without any doubts, that is also why they are just so stupid, just have patience people.

Yeah, correlations have been all messed up since the beginning of the year, well, since the election, but really bad since the New Year. The positive oil/USD/ES correlation just broke over the last two days, started on the 3rd when markets opened for the year.  I was not trying to imply that the two were 100% correlated, and I am sorry if that is what you came to believe.  I am not sure what you mean by mechanistic correlation, would that mean current sentiment is fundamentally always right implying efficient market theory?  Anyway, I am not saying that under 600 is def going to happen either, but it is important to keep in mind that it is a possibility.  I totally agree that prices are manipulated (which does not jive with efficient market theory) and that is something that we all have to deal with on a daily basis. As far as the USD I think that it could get much higher before it falls making USD the more sought after currency and credit risk than others during the run.  As far as the big picture is concerned I think that the USD will fall pretty far and given the state of other nations and the fact that it is the world reserve currency I could see BTC going much higher.  Mostly because it is not acknowledged as as much of a risk as say gold by the major parties at the moment.  Thank you for your input! This is a great conversation    

I don't think this is very likely

The price of Bitcoin doesn't depend much on the value of the US dollar (I mean beside simply mechanistic correlation). It mostly depends on the price manipulation and that could work either way, i.e. if the manipulators see that they can safely grab traders' money, then the Bitcoin price will rise simultaneously with the dollar (and vice versa). Otherwise, you will have difficulty explaining the recent Bitcoin rally while the USDX had been on the rise too

The one that sell, is the one that afraid of the price will going lower again, and the one that desperately need fiat to fulfill their needs, and specially in this newest case where china being search, is because they need to exchange the coin before the government declare whether bitcoin is going to be banned or not, if bitcoin being banned they will have difficulty to cash out

Should the DX rally to 106, BTC could easily fall to unter the $600 mark.  It is a very thin trade and therefore prices are subject to extreme movement, that said, it could hit $3K this year as well. To be perfectly honest the Chinese have better ways to get their money out of China than BTC at this point, esp with the new capital controls placed the last year.  One thing that is very important to remember in trading is that nothing is for sure. Always set stops and follow your rules.  I have found this to be relevant in all types of transactions, mostly the hard way.

Prices never move in a straight line, and if people are right and the majority of BTC IS in fact own by the Chinese, all you have to do is look at how their stock market moves and you will understand the exhaustive nature of their trading practices.  When it comes to a rally and a crash, they sure know how to do it right.  Here is the shanghai index, check out copper, hot rolled steel, the HSE, its all there in the charts.

https://pbs.twimg.com/media/C2DIbFKW8AAzWD1.jpg:large  

  

I wouldn't call these people stupid

Most wannabe traders are not stupid, they are simply extremely naive in this field. They may have read it somewhere that most traders and their money are just cannon fodder for market makers, that 90% of traders are losing over long enough time frame, but they either don't take this info seriously as they should or just think themselves smarter than the rest of the pack. Their biggest mistake is that they should be as smart as (or even smarter than) market makers since just being smart or smarter than their fellow traders obviously won't suffice

Not impatient. Either people extremely smart, or extremely stupid. If I had to take a guess, I would say that more than half would be stupid, and are small-minded lemmings who sell when the price drops.

Yes you are right I think Bitcoin holders were ready for a dump so the price is continuously falling from ATH but the price will not fall less than $600 and and after few months Bitcoin will start to raise again in the sky and each time Bitcoin raise in the sky it goes to new height than  previous ATH so hold your horses and keep your Bitcoin hand because in long run there will be profit only.

It was just a matter of time

As you correctly noted, a small announcement triggered an avalanche of panic sell-offs. But if it hadn't been this announcement, there would have been another such triggering event setting off massive correction. Simply because most people felt that the price was rising too fast and that wouldn't last for long. In a sense, the correction (or dump) had already been scheduled

The same people who sell all the way to 800. There is many people, scared Chinamen miners, scared chinaman, scared investors who invested at the top, people taking profits, longs being called. For someone who has been here since 2012 you don't seem to know much.

We have to accept the truth that there are many people who do not believe in Bitcoin and many others still consider Bitcoin as a type of investment. Therefore, when Bitcoin prices are high enough, they will sell bitcoin so as to get some profit. This makes the Bitcoin prices drop and cause other people feel nervous about holding Bitcoin. Then, most of the nervous people will sell their Bitcoin because they scare that they could lose the profit

The incident that has triggered the panic selling started at China when the central bank of China made an announcement to bitcoin holders in China to be careful in investing in bitcoin due to its volatile nature. Though the announcement was simple but the impact was great, Chines bitcoin holders who are newbie to the business sold their bitcoins that has instantly put down the price of bitcoin from 1000$ down to 900$. That event was not the end after that drop in price bitcoin holders around the world panicked and also sold their bitcoins and that has turned bitcoins price down to 700$.

After the panic halted, bitcoins price has started to increase slowly again and hope it will hit back to 1000$ by the end of January.

Every user doesn't have the same need and requirements. Everyone plan to sell at the increased price which is not at all possible. Only the person making closer predictions will sell at the right time. The same has happened now, though they knew that the price moves up, the need makes them sell even at lower prices.

Obviously, there are different types of people involved in Bitcoin trading

Most likely, you refer to day traders who are scalping small profits, they will always be selling and buying at whatever price. Apart from them, there are arbitrageurs who may be seeking for arbitrage opportunities with Bitcoin at different exchanges or with different currencies at the same exchange (or with different currencies at different exchanges). Other than that, have you ever asked yourself who are all those people that were buying when the price went above 1,000 dollars?

People will follow the market trend that's why selling.
lucky not a big panic. 

also quite surprise for me the action of china even before that i think the price up too fast to 1k and want to selling .

They are selling because they think price will continue to go down and you can't blame them, it's just human nature to panic when they see that their investment is starting to loose its value so better sell now than sell later at a more low price specially this week when there is a big drop of BTC rate in a span of hours. If they don't sell it right away, they might be selling their BTC way below their desired price.

Users just selling it because they are panicking. Greater percent of coins are being owned by the Chinese people. The bitcoin inspection by the Chinese central bank caused them to panic and now they are selling them causing the price to drop, while others seeing this drop are also doing the same.

no it's not normal, it was said and it's robably correct that the chinese exchange are under invastigation by their governemtn which might close them

this produced a panic sell from the chinese which result in the price to crush, in another words this is another bad news that destroyed the value so easily

If it is true then that must be a very great news for entire bitcoin ecosystem. It doesn't matter whether China is adopting bitcoins officially or unofficially. But if it happens then definitely will give us better benefits in long term.

I too believe intensively they are selling right now to get better prices to buy back.

We dont know this at all...
Do you have some magic that lets you see who owns what address and where in the world they are located?

Im guessing not.

yes you have led a very good example. Thus there is on the market. Some foolishly lose money. but if a little continued, it could well earn money

I agree and also see it that way.  there is also some thought in my mind that the government of China is accumulating Bitcoin itself.  If you check the pattern, it was China government that release a news way back 2013 that starts a burst and price decline.  And it is China today that starts the decline of Bitcoin price by announcing something that will shaken bitcoin holders into selling. Well it is just me and my imagination but the possibility is there.  They are manipulating Bitcoin price to their advantage.

It just another manipulation by big investors as they have money to do it in my opinion.
The current price keep fluctuate but seems more drop than rises, every day many holders and traders may sell their bitcoin which they had planned to if the price reach certain point such as $1100-$1000-$900-and $800.
This situation is so beneficially for daily traders as they could buy some bitcoin at $750 and sell it in the next day at $800.

New traders who got panic due to btc price fall and big whales who just want btc price to fall more are selling bitcoins now.Whales will definitely rebuy it when its price falls much below $800. Its better not to follow panic sellers and hold bitcoins. We can see the present situation is much better than 2013 fall as more people know about bitcoins and demand for btc has kept its price from falling below $750.Otherwise the price would have gone to $500.

Some people have leverage, some people just want to take their profit, there are short-term and long-term traders.

Short-term traders shouldn't trade with emotions else they might end up selling at a loss, which unfortunately seems to be the case for a lot of newbie traders.

Long-term traders generally understand how bitcoin works, and are more comfortable with a drop.

As you can tell, there are several variables and reasons for people selling, the majority of the selling is really from short-term traders.

this is normal in trading. when the price went up to about the 2013 all time high, naturally many traders took profits and the prices went down. this triggered panic selling to other bitcoin holders and the price went down further. looks like its bouncing back now

Some are new to how human psychology affect trading and follow the herd but some just don't learn from the past mistake, I could remember some weeks ago when Augur account of Ethereum investor was hacked, some people sold their Augur token for 10ksat and the second day the price went back to 400ksat

I am also wonder that why people are agree to sell their bitcoins at that lower price even they have saw that the price can be more than $1150. I think they are the people who see the price lowering down a little bit and they worrying about the more down and start to sell what they have. They are the newbie who just hold by seeing the ups only.

Wail, you know.  I gots my Ph.GED in home economics some time ago, an' if'n you gimme 40 cents I can make you a dolla outta it.  Ain't no joke neither.  Catfish fo' dinna tonight!  Mmmm hm.

It works like this:
People buy coins at a price, let's say $100. When the price goes up they hold in hope for a larger gain, but when it starts falling back to $100 they sell, afraid to go below, while in fact going to $90 for a month wouldn't hurt them in the long run. This starts a chain reaction, those who bought at $99 think the same and sell at $100, and so on, until we reach the moment when those who sold at $120 and below decide it's a good price to buy back. It may be $90 or 80 or 70, depending on the attitude towards the stock, or coin.

many people selling below $800 because of panic sell, and some of them know nothing about bitcoin future

Same questions can applied on why the price will decrease to below $500 or something like that in the future with the status of bitcoin today.

You know even without a solid basis I can shown or technical analysis I can present, bitcoin is definitely going back to what it was reached recently. And it can even passed it. It just needs time as we can't dictate what will be the price after in just analyzing the price behaviour for a short period of time. Bitcoin isn't an alt so better make room for understanding the difference of fluctuations in bitcoin compare to other alts.

Agree, if bitcoin users in China have 90% of total circulation, it's easy to manipulate the market price.
Sell BTC500-5000 will affect on the price obviously.
New comers panic looking at those drops and sell too, not a wise decision.
I only think positively about it, good time for purchase some cheaper bitcoin before it rise over $1000 again.

Yeah i fully understand what actually happens, my question was trying to get at why it happens i suppose.  I guess it is just that people panic and dont see the long term fundamentals that show that bitcoin will be worth far more than the current price eventually. 

We should not forget that there have been people waiting for price to reach this extent, then how come we can expect them to keep holding them for longer? Maybe they have sold some of their coins to get some profit and keeping a part of them to see if the price grows higher in future, that is what we all think of all the time.

 What are the reasons that make you certain that the price of bitcoin will rise to this figure?

The same old story why their is selling , it is clear that due to china government made some rules for bitcoin users so some traders who got panic and started to sell it and some of them are new comers who have bought on high rate and seeing the selling pressure they are getting out of knowing that low loss is better then fully loss. As they dont the potential power of bitcoin.

Be sure that at the current stage some people had bought their bitcoins at 250-300 dollars even at 500-600 and some of them are just getting their profits selling, bitcoin does allow anyone to make money as long you build and set your strategy. Some people may be leaving bitcoin after the big drop from 1100 to the current values, it wouldnt be the first time some investor moves out bitcoin, but i believe this are the whales that does wanna cheap bitcoins, and later they can pump again bitcoin easy.

Stresful plp who try to get out of ship before it sink, at least that what they think

There are plenty of reasons to sell. 1. You just suddenly need as much as possible money now for some operation or something else. You don't care if it's a good time to sell now, you just do. 2. People who are quite new as the OP said. They think that $800 is a very good price for some numbers. 3. People can be in panic. Even if one knows that he needs to wait and he'll get his money back he just can't stand the possibility of it all gone. $800 is a lot better than nothing or than $200 (the sum to which btc dropped the last time it cost $1k).

i think the has got panic situation when they see that bitcoin is going down to deep and they don't want to hold bitcoin any longer so they decide to sell their bitcoin in $800 or below. maybe they bought bitcoin in high price so when the price is down, they don't want to get loss so they sell the bitcoin too fast.

Yes people are keeping dumping the coin and giving all bitcoins to chinese people, and people who don't have patience are selling them at low price. This makes the price even getting lower and lower, really big whales are playing games with bitcoin because if they suddenly down the price people will impatiently sell their coins now it is happening right.

Thry are chinese and You are cutted out in question about why they buy or sell BTC for the language and cultural difference.
Just start to eat rice noodles and baozi.



You have no idea about BTC flow in chinese world comunity.

I guess the simple answer to that is because every one cannot think like you and the market is a perfect market with free entry and free exit coupled with the fact that the volume you have been able to gather over the years you have been involved, is not enough to dictate the terms and trend of the market. But I will want to believe when the price is on the high side you wont be asking this same question. Its a matter of time for things to normalise itself...

Maybe some investors have good profits from holding in early of 2016 or They have heard some bad rumors from china so that They must sell for their profit or cutting down losses for buying with high price . That is a good condition for us to buy more cheap bitcoins.

They are probably thinking better to sell just below $800 than just below $700.

People are impatient they don't want bitcoin be on the price of $1500 when bitcoin hit $1200 they start selling their coins and never pump it again they start dumping bitcoin and trying to buy again, I know that this will happen again this happen again last last year where bitcoin hit the price of speculation and the prediction is bitcoin will fall.

if you've been using and buying bitcoin since 2012 then you know the overall tendency of price remains. weren't you here when bitfinex got "hacked"? FUD makes price drop, wait a few days, then price continues to move up as it has for the last 3 years.

Just calm down this selling may end soon. And we will going back on the right track. Profit takers are making the price to go down, andnafter that buying time is next and the next target is 1500$.

Those people who are selling at these prices are those who don't know much of bitcoin. They can be manipulated to sell easily by spreading fud information or by a whale dumping all his/her coin followed by a chain reaction sometimes which cause to many more dumps and the whale buying up all those sold bitcoin. It might be some possible scenario though it might be that the Chinese are the ones selling their coins now.

Some whales might be manipulating the market too, you cannot ever know. If you had lot of btc, you could drive the price down and buy more coins at really low price.
If you had example 10000 BTC, you would try to drive the price down too right to gain more?

The ones who are selling now are the ones who have little to no knowledge on bitcoin. Many of them bought in at the top, because everyone was hyping in media that bitcoin would rise to 10,000$+. Now they see that bitcoin isnt some moonrocket and it has its swings. They are afraid of it going to 0 and them losing their investment so they sell.

If so, why You asking?
People fix profits loss.
This is aganst Your Religion to be marry with BTC.

Case 1= Not everyone owning Bitcoin bought it for money. Many just work online, get their incomes in Bitcoin and exchange it to cash on regular basis.

Case 2= Suppose, you bought Bitcoin last year when it was $500. You were holding it till now. But as the fear of price decrease, you are ready to sell it now for even $700 !!

You can't stop anyone from selling or buying Bitcoin. Bitcoin is user-specific.

the people who in need of money and those who's trying hard to get profit from short term trading. if there's none of people are selling bitcoin then it might be seemed really strange then because a normal market must have buying and selling activities so it will be balanced, and probably people who desperated because of the price falling also contributing on this high supply of bitcoin to be sold

There are many newbies in the bitcoin world who bought bitcoins first time in his/her life, without the knowledge how to trade, they are panicking now because price went down. But this is not problem next month price will be 1000$ again, or maybe in a few days

in my opinion it is because how exchanges are like today.
there is an orderbook which is still thin and because of that a whale can cause panic and others join in when they see the opportunity and sell to help the panic then they buy back at the bottom.

you see, traders who are only thinking about more fiat love a volatile market and the more swings it has and the bigger they are the more they can earn.

if those who bought bitcoin stop listening to fake news and stop giving their coins to the whales buy orders price won't swing this much.

The price of BTC is manipulated already and this sort of thing gives people to short BTC. Only those selling now will regret their decision on the long run

Brilliant analysis, Huge Black Woman,    do you by any chance know diamond & Silk ?   

They want stupid profits that's it lol.

Basically they are challenging the risk just like the holders. Since they secured profit at the current rate, they must expect that price will goes down more. It's a win win situation from them. If it goes the way they want then a win, if not then they need to pull out some extra funds in their pocket.

This is how hot hands are being tested in a situation like this.

They fools who would be awhippin' out a gotdamn umbrella if'n it started rainin' bitcoin.  They awways around an' they never makin' money cause they stoopit.  Y'all need ta be buyin' up what them sucka MCs is sellin'.  Then we be back on track fo' $1000 an' beyond.  Smart folks in the hood see this here as opportunity.  Dumb folks who cain't git the gotdam base pipe out they lips is the ones sellin'.

Price currently on bitstamp at $759.97  i am scooping up as much as i can 

Yeah more news today regarding Chinese central bank visiting BTCC and the price drops.  But even with BTCC reassuring people about the visit and that it went well people are still selling.  i really dont understand the thinking, in my opinion bitcoin is a amazing technology that will change the way fiance operates and because of that is worth far more than $800.  I am hodling until either i am a rich man or bitcoin goes broke.  

There are some ppl selling their bitcoins right now there are the one's who lack of patience and do not believe that the price of bitcoin will go up again and it will continuos to increase. I'm not selling my bitcoins wait for the right time  

Which would make it easier for new users to buy cheaper bitcoin, which then drives the price back up again. True, they're heavy users of bitcoin and it is a bit worrying that a sneeze there would make everyone else catch cold (or is it smog allergy?). Still, I don't see any reason for the gov't there to try to drop the price since that would affect all the miners there.

As for people selling it below $800, it must be really new adopters who are anxious that the price will drop even further. If you managed to buy btc when it was dirt cheap, there's really no reason for you to cash out in bulk.

as you know china is owning nearly 90% total bitcoin in the world. why we don't consider this big amount? and they can control this market. Everytime china has any bad news about bitcoin then the price is going down deeply.

I guess they are the ones who are impatient. maybe they want to make bitcoin prices down, so they can buy bitcoin at a bargain price. Well, I was also surprised to see the price of bitcoin down very quickly. I do not think they could sell their bitcoin under $ 800. but, maybe they have a bitcoin very much, and had to sell in large numbers.

I just dont get it.  i have been in bitcoin since 2012 so i understand the ups and downs in price.  i have also been acquiring bitcoin since then.  but i just dont understand the how people can still be selling at below $800. 

is it just people who are recent into the market ?  i thought it was abit early for ATH last week but i didnt expect a pull back to below $800. 

what ya thinking?