Hello Beautiful person!
I have been thinking about reasons of bitcoin fall and been watching "experts" on stock market, to see if there are correlations.
To set the stage a little, let me just summarize the reality we are hitting now:
So what I have learned is that during a market crash or strong correction, investor usually follow one core principle: Protect your asset/money.
In order to protect your assets:,
the first to be sold is volatile assets.
Then sell off assets that you "know" are over valued (tech stocks)
Then you need to cover your losses by selling assets that have yielded great results, aka book profits.
The 2 last steps are perhaps the major steps that throws us off when it comes to logic :)
Why sell off assets that are strong and still have a good future? To book profits and protect your assets so you can stay in the market for longer time.
Bitcoin, sadly, covers perhaps all the above bullet points: Volatile, tech and performed great.
It is only logical that BTC will be hit hard, given above mentioned arguments are valid.
All I am trying to tell you, my fellow traders and BTC fan is this: Think twice if you believe that this fall of BTC price is a result in no belief in BTC.
There is a logical reason behind this fall, that is not necessarily connected to the end of BTC or lack of belief in the asset.
PS
Looking at the chart, it might look like we are heading into a sideway trading between the support and resistant line.
DS
Stay safe out there and in these times: be sensible!
I have been thinking about reasons of bitcoin fall and been watching "experts" on stock market, to see if there are correlations.
To set the stage a little, let me just summarize the reality we are hitting now:
- Most of us are aware that the stock market is overpriced/overvalued and possible a large bubble
- Some of us have foreseen that this bubble will not hold.
- The Covid-19 acted as a catalyst to the above mentioned points, and then some
- We are only in the beginning phase of whatever you can call this: strong correction or recession.
- Many people thought BTC to be digital gold, and why is it falling
- Gold and other precious metals are also seeing a drop.
So what I have learned is that during a market crash or strong correction, investor usually follow one core principle: Protect your asset/money.
In order to protect your assets:,
the first to be sold is volatile assets.
Then sell off assets that you "know" are over valued (tech stocks)
Then you need to cover your losses by selling assets that have yielded great results, aka book profits.
The 2 last steps are perhaps the major steps that throws us off when it comes to logic :)
Why sell off assets that are strong and still have a good future? To book profits and protect your assets so you can stay in the market for longer time.
Bitcoin, sadly, covers perhaps all the above bullet points: Volatile, tech and performed great.
It is only logical that BTC will be hit hard, given above mentioned arguments are valid.
All I am trying to tell you, my fellow traders and BTC fan is this: Think twice if you believe that this fall of BTC price is a result in no belief in BTC.
There is a logical reason behind this fall, that is not necessarily connected to the end of BTC or lack of belief in the asset.
PS
Looking at the chart, it might look like we are heading into a sideway trading between the support and resistant line.
DS
Stay safe out there and in these times: be sensible!