Topic: Why we need price crashes and panic selloffs - page 5. (Read 1345 times)
Actually we don't need that since small time people can't afford to see that since they may lose some huge value if the price go down severely and hence if it occur they don't have money to buy back. That's why I really condone those rich people who spread fuds since they creating those bad words which can make people lose and get panic while them they earn with people's panic mindset.
panic selling is usually caused by an event that is not expected by the investor. it sparked investor fears and led to a massive sell-off, followed by frightened retailers and selling stocks that resulted in sharp drop prices accompanied by enormous volumes. market crashes are usually caused by panic selling action. I think this is the panic that makes the market stronger because of new opportunities after the panic has started to give special coins to wake up.
For me the panic selling is not a good thing because it has a lot of effects on the over all performance of the bitcoin, also the bitcoin is the decentralized currency so more people getting this panic, the worse it becomes but on the positive side, it has some better thing to offer because most of the new comers join the bitcoin whenever the market is down, so this positivity brings more investment to it to cover the loss.
CRASH AND MAJOR SALE OFF IS REQUIRED TO MAKE ANOTHER HIGH CONSOLIDATION AND FOR MORE INFLOW OF THE MONEY SO FUD IS CREATED AND ALLOW MORE TO COME IN.
I'm more interested in the causes of these failures. When the stock market falls, there are reasons for this. It is possible to analyze this phenomenon and to make some predictions. But I can't see the reason for the bitcoin price drop. It bothers me. Of course I also do not like a long period of price decline, but this is not the most important for me.
There are a number of reasons of why the price went down, the most important for the recent decrease in price is that someone began to sell a huge amount of bitcoins this scared traders and investors and this made the demand to go lower and when you have a big supply and lower demand the price will go down, however bitcoin is also susceptible to things like FUD and political manipulation but still with each passing year the effect of those two things goes down.yeah, but in fact that sell out started if February but media pointed out for this only in March why?
I will agree that bitcoins is highly sensitive for all kind of FUD and news.. I'd say extremely sensitive..
and it is really not going to work for TA models)) cause according to TA is should rise to 15K, but instead it is going to 7k))
I tend to disagree that Bitcoin right now is extremely sensitive to FUD or just sensational news. It has become kind of invulnerable or even invincible to them. Let's remember the Chinese news that were shaking and quaking the markets through the entire 2017 year. At first they were making a difference and then this difference began to taper off until their impact came basically to nothing. But Bitcoin cannot be made invulnerable to large sell-offs because its price is still in the realm of economic laws like those of supply and demand.
This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
The classics never die.. they just find new markets.
From Jean-Paul Rodrigue (2017)
Bubbles can be very damaging, especially for those who arrived late with the hope of getting something for nothing. Even if they are inflationary events, the outcome of a bubble’s blow off is very deflationary as large quantities of capital vanish in the wave of bankruptcies and financial defaults they trigger. Historically, they tended to be far in-between, but the scale and amplitude of bubbles has accelerated; web/technology stocks (deflated in 2000), real estate (deflated in 2006), commodities (deflated in 2008) and crypto-currencies such as Bitcoin (deflated in 2018).
because when price crashes and panic selloffs happened, we can buy at the bottom 
They are important somehow. If prices are always trended towards high how can any other person buy bitcoins? That would be like impossible for someone to get into bitcoins world. It would be a train that is passing through a station only once whos ever left it, could never be part of it anymore. So avoiding all such circumstances, developing teams have worked out on it.You're not making sense. The comparison with a train is ridiculous because if you were standing at a station and the train would pass it you wouldn't be able to get in, right? Now with BTC the price passing a point doesn't limit your ability to get in! With the price at 1000 you can always go in at 1050, or 1200 or any other. You will simply be buying less for the same price, but you will be getting in and you will be gaining more value with time. I can't believe you're really seeing a rising value as something bad.
I'm more interested in the causes of these failures. When the stock market falls, there are reasons for this. It is possible to analyze this phenomenon and to make some predictions. But I can't see the reason for the bitcoin price drop. It bothers me. Of course I also do not like a long period of price decline, but this is not the most important for me.
There are a number of reasons of why the price went down, the most important for the recent decrease in price is that someone began to sell a huge amount of bitcoins this scared traders and investors and this made the demand to go lower and when you have a big supply and lower demand the price will go down, however bitcoin is also susceptible to things like FUD and political manipulation but still with each passing year the effect of those two things goes down.Yes, it has become known that a Mt. Gox guy was selling something like 40k bitcoins December through February, and he still has 4 times as much. And I'm afraid that until he sells it all, we won't see prices rise anymore, to any appreciable degree. People will always think that there's someone who's ready to take advantage of them. Well, there was always someone like him but no one saw them sell their coins yet. Until now.
because when price crashes and panic selloffs happened, we can buy at the bottom
They are important somehow. If prices are always trended towards high how can any other person buy bitcoins? That would be like impossible for someone to get into bitcoins world. It would be a train that is passing through a station only once whos ever left it, could never be part of it anymore. So avoiding all such circumstances, developing teams have worked out on it.
We need those kind of things because that is how we are going to make good entries for the market and if we will be patient and wait for the right time to enter the market then we will not be worrying for the possible loss to get since we all know when to enter and exit the market and that is why it is better to study the market first and watch the price actions before making any action.
For me those both situations only make market better for investors to just catch some coins at good prices for trade or just hodl next months.
True - smart traders try to catch these moments and use them to buy cryptocurrency for fewer prices. It means that only a person with cold mind and heart can finally win in this battle and get his benefits.
Well, myself, I wouldn't use the word 'reputation'. As you yourself say later in the post, it is more about faith. And then I certainly agree with you. When Bitcoin crashes so hard, people lose their faith. But that's how things often happen with faith in real life. People who blindly believe in something, which is what faith is all about, typically end up being deceived. So you shouldn't actually be surprised with how the events have been unfolding since December. It was sort of set in stone and written on the wall at that.
Thats why i said for now people might still have faith in bitcoin but whats left of it if there would be another fallout? I prefer reputation because bitcoin is an investment instrument and every investing instrument uphold their reputation to stay alive and stay stable to maintain their investor. If bitcoin happened to dropped again like this recent days and reached a crash towards $2k again then bitcoin will surely lose reputation among investor as investor lose faith to bitcoin.So i think its a mutual concern between bitcoin and investor and its more like wording than actual understanding and no i don't suprised with event unfolding since december as i said in my previous post. If bitcoin really valued much than there is no reason to have a crash and panic selloff. It would only happened "IF" bitcoin really didn't have value anymore and then there will be price crash and if that happened there won't be any rise in bitcoin price.
People didn't invest in the price, they invest in a value of something. If something has value much and now the price is undervalue then it would be a good decision to invest but a decrease in price didn't have the same meaning as a price crash.
This is the interesting part of your post. Your main omission is that weaker and stronger hands are a relative notion. I remember I have already mentioned it somewhere and maybe even in this very thread. In a nutshell, there will always be strong and weak hands, there cannot be only strong hands in the market. It's kind of a given. While weak hands leave, less stronger hands remain, but it takes even higher volatility to shake them out. In other words, it works in the opposite direction toward more volatility. Obviously, this is applicable only to speculative markets, but Bitcoin undoubtedly belongs to this category.
Yes, there cannot, but the ratio will change. The market never moves towards more volatility, except if it is in the adolescent phase or reaching its end.
What you mention "it takes even higher volatility to shake them out" I take as a very valuable mention. You are completely right, as the market reaches the stability phase, what was in is mostly left in because the volatility should go in opposite ways in order to shake things out.
I don't really believe we can measure crypto markets by the same yardstick as we do with, for example, stocks, or even just one stock. It could be said that volatility is built in with Bitcoin. There is no significant use for it outside speculation. That means that it can't be stable. When it moves toward more stability, people become bored and they start to withdraw their capital from Bitcoin, which, in turn, leads to volatility. In this fashion, crypto volatility is a self-sustaining process which can maintain itself on its own.
Well, FIAT money market (and there are a lot of speculation markets connected to FIAT money) is usually measured in a similar way as stocks market while for FIAT money the same rule applies - it's value is made only by what we are willing to add. I like the rest of your comment, especially the statement about the boredom, I believe that is true.
We have to track all those crushes)) be prepared and learn all the time! We can use Mapofcoins or Coinmarketcap to follow the newest tendencies and price fluctuations. I'm sure most of crushes are quite predictable and we can benefit from them.
i think crashes happened to balance it all out. if the price of bitcoin just keeps on increasing and it's not decreasing, trading will be impossible because traders will just keep it for long because the longer its kept, the higher its value will be.
I think it's all necessary to make changes to market prices, because crashes are needed to distribute bitcoins into strong hands from weak hands. In order for prices to rise and panic behavior, selling at low prices.
This is the interesting part of your post. Your main omission is that weaker and stronger hands are a relative notion. I remember I have already mentioned it somewhere and maybe even in this very thread. In a nutshell, there will always be strong and weak hands, there cannot be only strong hands in the market. It's kind of a given. While weak hands leave, less stronger hands remain, but it takes even higher volatility to shake them out. In other words, it works in the opposite direction toward more volatility. Obviously, this is applicable only to speculative markets, but Bitcoin undoubtedly belongs to this category.
Yes, there cannot, but the ratio will change. The market never moves towards more volatility, except if it is in the adolescent phase or reaching its end.
What you mention "it takes even higher volatility to shake them out" I take as a very valuable mention. You are completely right, as the market reaches the stability phase, what was in is mostly left in because the volatility should go in opposite ways in order to shake things out.
I don't really believe we can measure crypto markets by the same yardstick as we do with, for example, stocks, or even just one stock. It could be said that volatility is built in with Bitcoin. There is no significant use for it outside speculation. That means that it can't be stable. When it moves toward more stability, people become bored and they start to withdraw their capital from Bitcoin, which, in turn, leads to volatility. In this fashion, crypto volatility is a self-sustaining process which can maintain itself on its own.
crashes are good or bad? it depends on which side of the game you are on. it's of course good for those who have sold earlier or come in too late, but bad for those whose hands are weak. People who took out mortgage or took on leverage might go bankrupt due to the crashes. I daresay they won't like any crashes no matter how good it might be for the overall health of the market.
Decreasing the price of bitcoin for investing people is a great advantage.I do not think the price of bitcoin will continue to fall.I think that the moment purchases will provide good earnings.
We need price crashes to buy a cheaper coin in order to have a advantage to get more profit returns if the prices will pumps. It is not a good way to panic selling bitcoins because probably it will loss our bitcoin and regrets the happening. 
Decreasing the price of bitcoin for investing people is a great advantage.I do not think the price of bitcoin will continue to fall.I think that the moment purchases will provide good earnings.
because when price crashes and panic selloffs happened, we can buy at the bottom
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