Topic: Why Bitcoin price is falling? - page 7. (Read 1287 times)

Note never expect Bitcoin steady price increase as that is not possible, there must be some level of corrections in preparation for the next price benchmarks.

Also the price can fall when there is a major negative news in the industry e.g the last china crypto currency ban that made most mining activities to decrease there by lead g to market crash.

The Bitcoin halving has passed in 2020, and the bullish season after that in 2021 has also ended,
so this year is a bearish season, this is common in the cryptocurrency cycle,
if you want to buy bitcoin or altcoins I think this is the best opportunity to increase profit in the next 2 years,
because the next Halving is the Halving that makes Bitcoin to $100k.

First, it is very good news if you want to be a large holder of bitcoin. As the bitcoin price falls, the savings you make are larger, so you now have more purchasing power. So if you invest now, you'll be a large holder of bitcoin by the time the price rises again. If you wait for later, you'll miss out on gains. (Sounds obvious but it's not, there is still lot of people waiting for the price to rise and never start investing when it drops).

And so we are in the bear market, yes, this cycle is not very welcome but we should take advantage of it, no matter what. Crypto market is really base on news and most of the time is has this so called correlation with stock market. So if stock is doing good, then maybe we will see crypto market doing good as well and vice versa. And then we have the world news specially the war that is affecting us negatively, but the good news is that the price recovered and almost touching $40k again.

I don't know if you're new to bitcoin but it's not the first time (and it won't be the last) that the bitcoin price drops,its a simple bear and bull market cycles and it happens all the time.

Nothing can tell it accurately. None, Nada. All you can do is try to look at it's environment. World economy, number of exchange and volumes, adoptions, and a lot more. In short, it's a lot of work just to connect the dots and you might not even get the right answers even if you done it all.
Just look at the exchange on how it keeps on moving every day in high amounts, that tells exactly that Bitcoin has a volatile market and those are like human perspectives on where it will go. The good thing about it is you are sure no individual is in control.

With new bitcoins entering the market daily via mining rewards, there's a lot of downward pressure on the market.  As the price of Bitcoin goes higher, this leads to even more downward pressure on the market as the number of bitcoins being produced is the same, but their value is more as prices rise.  When billionaires start scooping up tons of BTC it leads to volatility as a result.  They often buy up all the BTC on the market sending prices higher, but then there isn't the constant buying support to keep prices elevated.  Until supply and demand find a sweet spot where they find a balance (impossible with block reward halvings) we're going to see a lot of ups and downs.  Options trading should level it out a bit, and I think that's why we saw a price range between $30K-$69K instead of a massive bubble to $300K. 

I agree with you that the price of bitcoin depends on demand and supply because whenever there is high in demand in the market, the price will be high for buyers to purchase at the moment. But whenever there is high in supply in the market, the price will be low for buyers to purchase and hold for future. Those two factors make the price of bitcoin to fall in the market which many people are aware of these two factors not to be panic at the moment when the price of bitcoin is decreasing in the market than to believe that the price of bitcoin will not remain low forever in the market.

Basically there are several factors that cause the price of bitcoin to fall. Firstly the price of bitcoin depends on the balance of supply and demand. In addition, fear and greed and psychological factors of investors also often affect the price of bitcoin to fall very deeply.

Of course what odolvlobo said is true. But in technical analysis terms, what we're probably seeing now is a coincidence of two factors:

1) Price is caught inside a sideways channel which points (for Bitcoin's standards) very slightly upwards. Its low were the ~$33000 in January, then there was another low in late February (but the February low was already higher than the January one). The price moved first in a slightly steeper channel but then broke downwards into the current one, and is now searching for the next low.



2) The MA600 (not included in the pic) was broken downwards, while the price failed to gain momentum to break through the EMA30/50 upwards (blue line in the image). This is also currently not pointing to a short term trend reversal. However, it is also still not indicating real "panic" as we're still in the upwards channel.

IMO, if the price now in the next days manages to hold the current low of 37400 and break 39000 again (where approx. the EMA30 is located), then there are good chances to stay inside the slightly bullish channel.

In my opinion, technical analysis of this kind matters somewhat, because it is the method used in many trading programs, bots, and of stop-loss order sellers. But the other reasons you mentioned (recession fear, influencers etc.) also matter of course.

Of course "we're currently in a bear market" if we compare the price to the last ATH. But it still is possible that it's only a relative short-term down move with the low in January. Only if the 32951$ would be broken downwards the bear market would be confirmed.

Overall BTC hasnt been falling just wavering within a range.  It could fall as some speculate it might, the current negatives are quite obvious in the news and it shifts the balance to Dollar strength and alot of pressure on other prices compared to 'normal'
  Overall BTC went sideways, its even gained this year during a war which means it cant really be thought of as negative to any excess:

This is the span of this year, examine the lowest prices more closely then the tops.   The reason to consider markets this way might be similar to the caution your have pouring a glass of coke or pop, fizzy action is less reflective of the long term underlying balance of value.
   Consider the lows as the best guide to estimate long term, BTC hasnt been particularly negative within this year but it might in future be challenged increasingly.

Is it obvious that we are facing the bear market already?

This is the only reason I find why the market slowly falling and it did happen in the past already so there's nothing new here. If one single News that would change the market again it should be a whale buying bulk of BTC then we can see a pump again although I'm hoping it would but it seems the price is slowly taken over by the bear market.

I cannot see any fundamental reason as why the bitcoin price is falling and not increased for many months. I can say that probably the demand of bitcoin has decreased over some time and there has been stop in tether printing which has caused this price dump.
I can see inflation all over the world and soon people will look for safe heaven investments and bitcoin will be the best place where they can keep their money safe.

It will remain unpredictable, no one can give an exact answer to this question, even themselves calling experts in predicting the price but that's impossible.

But we have here a guess, a theoretical explanation of why Bitcoin falling down and as a basic answer, it's because of the demand and supply which have an impact on the price.  When the demand increase it's obvious the price of Bitcoin increase.  Using technical analysis also could broadcast the possible price of Bitcoin and other cryptos.

I suggest to you don't look up the market in a short term, just invest in the purpose of long-term holding.  It makes you paranoid thinking about them so much, forgot that you've to hold Bitcoin and comeback when there's an ATH you've heard, that's might a good solution.

No one knows on whats actually happening behind on why we are experiencing these declines
but you could possibly choose on this one.

1. Selling time
2. New/Fundamentals
3. Instutional/Whale pulling their funds
4. No actual reason

So if you are just new into this market then you should really be prepared to bare out yourself
into these probabilities.

Bitcoin in general is in bear market, and right now there's more negative news than the positive - economic uncertainty in the world, anti-PoW sentiment in high circles, no ETF, lack of significant progress in adoption. For now the price decline is well within the norm, there's no reasons to get worried. You could start worrying if Bitcoin would drop below $30k, which was a major support level.

Think of it as a normal market rotation. "Everything that has been up, should go down". That's what you're going to hear from the investors that have been in the market for a long time.
You don't see bitcoin going up forever and if there's no correction, there's something wrong. Just as said, no actual reason for that but if you really are looking for a reason, read some news and there could be any of them that has contributed to the plummet.

We are currently in a bear market trend aside from that the economic issue of Bitcoin mining may have an effect and adds impact on the current downward Bitcoin price trend.  I also think that news of the recent speech of Warren Buffet at the annual Berkshire Hathaway shareholders meeting[1] somehow discourages possible new Bitcoin investors. Also Wikipedia's recent action of disabling their Crypto donation options and recent statement[2] may possibly affect the Bitcoin Market.  This is one of the few fundamental reasons why the BTC price is falling, IMHO.

---

[1] https://www.cnbc.com/2022/05/02/warren-buffett-wouldnt-spend-25-on-all-of-the-bitcoin-in-the-world.html
[2] https://fortune.com/2022/05/02/wikipedia-wikimedia-foundation-no-crypto-donations-environment-climate-bitcoin-ethereum/

keep calm and hold or if you can't hold, just stay in usdt, Fud, and holders selling due to Fud always leads to dump, there are some crypto analysts who predicted that there will be a dump this month so lots of people will panic sell its not a new thing, bitcoin had survived lots of fuds and the most important thing you need to know is that are you in for the long or short term, if long term you don't need to bother about price

Holders are dumping.

Influencers are spreading the word that we are now in recession which  stock market is crashing and so people dumped to hold stablecoin to prevent from losing money. If this is what you are going to be hearing from the rich Bitcoin youtubers like Kevin O'Leary or Raoul Pal and Gareth Soloway, you may really be afraid of whats coming if you bought BTC at $45,000 while they are projecting the price to go below $30K.