The BTC sell-off was more closely related to Market Dynamics than anything else

in #bitcoin3 years ago

There's reason to believe we won't see another purge like we saw a couples day anytime soon

The news caused the big drop!

Well not really.

Market dynamics are what cause drops and pops.

And that played the biggest role in our latest declines as well.

We had a ton of people on margin and leveraged with stop losses and liquidation levels at certain spots on the charts.

When the price fell to these spots it forced them to sell.

This forced selling drove the price down even further to the next liquidation level which caused more forced selling.

This forced selling further drove the price down etc etc etc.

It worked like a chain reaction of downward moving prices until eventually the buyers stepped in and stopped the spiral.

image.png

(Source: https://bittrex.com/Market/Index?MarketName=USD-BTC)

Well, now all that leverage is wiped out...

It will take time for that leverage to build back up again and due to that we are not likely to see another plunge like we saw a few days back again any time soon.

The lows may or may not be in but we aren't going to see a 30% drop in a day again anytime soon.

Market dynamics matter more than whatever the news is in terms of moving the price.

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We need more people to be BRAVE like you and speak out. Good day.

Thank you.

Would really like to see BTC close above 50k by the end of the week :)

Ha, not likely. I'd take a close above $40k at this point.

Ya probably not, probably close the week some where between 38k and 44k ;)

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