Topic: Why "Buy the Rumor, Sell the News" is Fading in Bitcoin Trading? (Read 757 times)

News can be real or fake, FUD but we as traders in the market, not as market makers, can not control news. What we can do is with our trading positions and trading capital. We are free to open or close our trading positions and this practice can help us defending our trading capital or destroying it.

Trading does not mean holding positions for too long, because market can suddenly move up or down dramatically that can cause either Short squeeze or Long squeeze and it's not too rarely with both Long and Short squeezes occur within few minutes.

With uncertainty on what's next, it's safest to close all current positions and do like your advice, wait for chances to open new positions. With traders, nothing is more important than protecting their trading capital and closing all current existing open positions is a good practice for capital protection.

One of best weapons in trading. Use stop loss order is good but if traders are in time of very high uncertainty, it's safer to close all positions than using a stop loss order, that can fail practically too.

I will not say that those days are gone, they will happen again in future but massive changes are not happening commonly or at present times even with political tensions between countries and elections upcoming.

Flippers are looking for such quicks gains but holders are not. So you have to decide what position you want to take - both are profitable at specified durations of holding but the frustration that comes with not being able to flip is much higher than holding.

Either way prices are staying at stagnancy hence it is better to wait it out than open a new position.

Shouldn't it be the reverse? I mean if there is a war going on, then bitcoin should be better to hold compared to cash or stablecoins? I believe if my nation was under attack, the first thing I would do, literally even before I pack my things to leave, I would just get bitcoin with everything I have, then get some cash as well, those two will allow me to run away to wherever, and do better.

Bitcoin is such a solid asset and you can just keep it going between borders without a trouble at all, whereas everything else is much worse. Having a fear of war between Iran vs Israel and selling your coins because of this reason makes no sense to me at all. Even they shouldn't be selling it, let alone people in other nations, who definitely have no reason to sell.

It all starts with how they joined this market and how they did risk and capital management. If they purely joined this market after were informed by friends, news about Bitcoin, but did not make any due diligent research, they were not prepared well to stay strongly in this market.

They could not have proper risk and capital management for either their investment or trading. Like if they started with not their own money, but loans, they will no longer have good ability to stay strong when bad news appear in this volatile market. Even they want to be strong, market liquidations will kill their positions and they will lose big capital rather than get profit as they hoped at beginning.

The reason why many people are just very worried about the price of bitcoin is because a lot of people are basically involved in trading bitcoin by buying and expecting the price to rise almost immediately but they forgot to know that bitcoin investment can be more fruitful in the future than those little profits they are interested in taking within a short interval of time. Big news influences the market positively no doubt but we should not depend so much on them. Positive news will only boost the confidence of investors a little but it can't cause a dump if it goes the other way round and many investors have come to believe that bitcoin is better as a store of value than involving in perpetual trading.
     Gone are the days when negative news leads to immense DIP and struggles to come back because right now bitcoin investors are no longer by negative news about bitcoin unlike in the past when their is any little negative news people begins to panic and sell their coins.

It was never been effective in the first place if we do speak about that "Buy the Rumor, Sell the news" on which we do know that when it comes into this aspect then this space isnt something that will really be giving out that sure effect into its price whenever there would really be news or fundamentals around. When we do speak about movements then it would really be that totally random and this is why it is really that an unpredictable space on which this is something that not all be confident on dealing with because of too much volatileness and that very random on which certain analysis doesnt really work all the time.

On the time that government and institutional funds are starting to flow into this market., then we've seen different instances or conditions on which price is really that highly reactive
on the moment that news would be coming out on which it would really be neither positive or negative. For those who do make use of TA's but doesnt apply any FA's then they would really be able to see
their trading analysis wont really be able to hit the spot because with those common factors on which this could possibly be changed up.

Don't you think it was bound to happen with time ?
Back when bitcoin used to pump or dump based on news and events it was relatively new and people used to react to those events.
But as time is passing by, people are getting smarter and volatility is decreasing as bitcoin price is increasing.
The amount of money flowing in drives the volatility and as the marketcap increases bitcoin would need even more amount of money flowing in to keep the volatility high.
If no new money flows in then the price would swing within a range.

One of the reasons for the high interest in investing in Bitcoin is that this coin is highly volatile, which means that investors can lose as well as gain from it. If there was no volatility then everyone would not have the same attitude towards it. Many people think that if Bitcoin was stable instead of volatile then it would have been profitable but that is not the case. If Bitcoin is stable for some reason, then it should be understood that the interest of the general public has decreased. People will move away from this platform if ordinary investors cannot profit. If the volatility in the market decreases, the volume of transactions will also decrease, so eventually people will lose interest in it. In general, the ups and downs in bitcoin price is an important aspect, if the price is stable then people will be discouraged to invest in bitcoins.

Actually pump and dumps are still there. Meme coins are example of it and meme coins are still popular even at this point. Crypto being approved by someone or some entity is a big thing, no wonder why we can see a positive effect in the crypto price after.

It's also possible that the effect will last long if the person or entity that approves it will keep on making innovations in their business, place, etc... with the help of the crypto.

Crypto moves in cycle, so whether we like it or not or no matter what we do in order to counter it, there will always be a time that the cryptos position are going to change from positive to negative or from negative to positive. The optimism is still there and will always be there.

In fact, in the ETF that occurred this year, a lot of people are positive about it before it happened and this positive optimism have carried on even after the approval of ETF. That is because the effect is really positive in the price.

There might be times that the effect is negative, so the optimism of the people can also change from positive to negative as well.

Institutional investors are already there even before but maybe more are coming in here. That event can actually make the price of Bitcoin to be more unstable but there is a new growth that will be experienced. BTC has never been boring even though there are times before that its value is stable.

Bitcoin dip was realised in 2022 and from May to November. And from November the price had started changing. And since then I have not seen bitcoin going back the those of pump and dump. And I don't think bitcoin would still hit $16k again. But we will see the full results from next year. And for me bitcoin is still on the good (pump) side of the market because the previous market of All Time High was $69k though I didn't see that before this year All Time High of $73k and if you make some calculations, and now that bitcoin is $61+k, it is still on the significant pump and it will become dump when the price reduced below $40k. Yes the second ETF made the price rise and the next thing which I am suspecting that will make bitcoin price to soar is the victory of Trump and if really he implements what he said.

People who went through a bear market or several bear markets will understand it better.

In bear market, even good news does not show any positive effect and bad news will always trigger massive negative effects on the market. Oppositely in a bull market, bad news will sometimes don't have negative effects and people simply skip these news and move on with their greed and purchases higher and higher. Of course sometimes bad news in bull market will trigger a correction or crash.

These examples mean that we can not control news, when it will be released, and whether it is good or bad news, but more important, we can not know what effects of a news on market, it's very unpredictable.

The world's hardest asset? It's not the hardest asset in the world, it is the most volatile asset. Bitcoin is a speculative asset so it is no surprise that when there is unusual volatility, people will rush to sell to avoid more serious losses. Also, it depends, if you are a long term bitcoin investor then selling would be a bad idea as the drop is not significant. But if you are a speculator, a trader, selling or cutting losses when there is negative news is the right thing to do .

Also, you can't expect people to stop panicking and stop selling because financial markets don't work that way. If there were no panic sellers , how could bitcoin price fall and how could we buy the DIP ?

If it means negative news which could mean negative result on bitcoin price as well, then I don’t think selling bitcoin is appropriate. Instead, you buy more while the price hits the market and create a significant drop. I think this is one of those reasons why traders never end up profiting, because they tend to sell at a wrong timing, regardless if they buy bitcoin at a low or high price.

It is only a matter of strategy how you will gain profit from this market. It may be a tedious job but it needs hard work to gain profits. Traders will understand this as they have their first-hand experience when it comes to finally executing a trade. If you have no ample time in trading, better not to force yourself. Because you will only deplete your financial assets for some activity that you are not fully prepared of.

Situations like Iran-Israel is quite hard to see, but people need to decide on what to do with their assets. At the end of the day, it is the person himself who is responsible with his assets, so need to take care of his own business rather than rant everywhere and attend someone else's affairs.

 

Why is this "news"?

The Middle East has ALWAYS been unstable, and it will be unstable FOREVER. But from that "Israel - Iran" war, I believe that we will be given another GOLDEN OPPORTUNITY to buy Bitcoins with a discount. - MORE units for the same amount of capital.

I also believe that a majority of the plebs will be fully bearish. Wait for that MOMENT, and Buy the DIP and HODL.

You need to understand the reality of the market now. Gone are the days when an anonymous whale would cause huge market drives due to rumours and mere internet words/biases, the market is now mature, we should respect that. Another thing is that those news/events you mentioned are real and are indeed good driving forces for any market since they envisage advancement and better liquidity. Nevertheless, it is hyped as usual, the reality is what we see now when the dust settles down.

Yes, we should accept the fact that institutional investors have taken over Bitcoin's market drives, so the market will behave more sane now. And for me, the market is never boring, it can only be boring to those who do not change their strategy. The key now is a smart investment based on the market condition and reality, not the old mantra/ways that are not always feasible.

It's more than true as news is used by market makers and except if you are one of market makers and are controlling the news will be used for market manipulation.

You are right too about how news is used and when it will be released to let many people know about reasons of market dumps. People always look for reasons of market dumps and after a while, they will see reasons that written in news.

News cannot be trusted when we need to find actual reasons of market movements.

So have you sold your bitcoins yet? If you sell bitcoin in time I would be surprised because usually the market reacts before we find out what caused it. If you notice, usually when bitcoin gets dumped and then people start looking for the reason, so almost no one sells in time, and few people can know the news before the market reacts, unless you are a big whale.

Also, selling at this point is actually a bad idea because bitcoin is not down that much, just 5-7% and this drop is too small for us to panic or think about optimizing.

I think on the contrary, bitcoin is unlikely to fall further and will recover from here because bitcoin's correction was only meant to liquidate liquidity and it has done its job. As for the war, I don't think it will get more serious and have a big impact on the market.

Didn't expect this drop to happen and although we see some disappointing sight this morning still I will able to hold my bitcoins. Didn't plan to sell it at the moment since I'm planning to hold it. Although it good to see that bitcoin experiencing some dumps since this will open up some opportunities to us to acquire more since there's huge chance that price would recover soon.

This is indeed a good opportunity for people to gain something from the dump. If they won't take any action and remain scared then provably that they might regret that they missed a chance to acquire bitcoin when the price fall at $60k - $61k price level. Will seek more information regarding on current dump happened to day maybe we can get an information which is helpful for our investments.

In my opinion, the Bitcoin price will indeed be more stable than before for some time. Spot Bitcoin ETF funds are a new factor in the cryptocurrency market.

First of all, the approval of Bitcoin ETF funds is a stimulation of demand for coins. It is now easier for investors to invest in Bitcoin, so the very existence of such funds will serve as support for the Bitcoin price (therefore, there will most likely be no sharp price drops in the near future).

In this regard, it should be noted that alternative cryptocurrencies (except Ethereum) do not have such support. And their price, in theory, can fall very significantly.

At the same time, ETF funds have the potential to manipulate the price of the first cryptocurrency (in a certain corridor). As a result, we will probably face a situation where the Bitcoin price will move along an unpredictable trajectory (at the same time, the volatility of this asset will decrease).