Why Does Bitcoin’s Price Make Random, Sudden Downward Moves?
The bitcoin market’s volatility is a well-cited aspect by naysayers—but what causes it?Mimesis Capital: Inside The Event Horizon, Report #15Why Does Bitcoin’s Price Make Random, Sudden Downward Moves?A common knock on bitcoin is that it is “too volatile.”There is no denying that bitcoin is a volatile asset. Its price action supports this conclusion on nearly all time frames (including minute, hour, daily, and yearly).However, volatility isn’t necessarily a bad thing. In fact, volatility creates opportunity.Over long time horizons (4+ years), bitcoin’s volatility has been mainly to the....
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Bitcoin’s price is approaching a critical line, where the following direction of the trend is likely to be decided. Is it a rebound or a turn? Bitcoin’s price is in a rebound toward the downward trend. The fact that Bitcoin’s price didn’t fall lower and faster indicates that the bulls are holding it at the current level. There is always a chance for a turn. But for a more certain signal, this downward movement has to become a rebound, instead of the first downward wave. In that case, the bulls will win the advantage. The buyers will then have to fortify at the level of $418-19, thus....
Bitcoin’s price is in a correction towards the downward trend. The most likely peak of that rebound is getting close. That means that soon a new development will be chosen by the market. At which mark is the price most likely to undergo a downward rebound? Bitcoin’s price has formed a short-term flat under a key resistance line. Whether the downward trend will continue or a turn to decline will form is dependent on the future reaction of the price at the key levels. The key resistance line has descended a little bit toward $455. Several significant instruments are intersecting at that....
Bitcoin’s price, unable to form a turn to growth, is continuing its downward trend. That movement is approaching a long-term resistance line, from which it may rebound up. The long-term correction is continuing, After breaking through the key level of $455, Bitcoin’s price could not fortify it. The bears were holding the advantage, which led to Bitcoin’s price falling and fortifying below that mark. The downward rebound scenario has played out. The level of $455 remains a point where the downward trend, which has started at $460, could be broken. The downward movement is part of a....
Bitcoin’s price is right now at a point where the market will make a decision on the further medium-term direction. There will either be a turnaround or a continuation of the downward trend. The price has bounced off the level of $409, that we’ve mentioned before. This indicates the buyers’ relative advantage. However, before that advantage becomes significant (either with buyers or sellers), there will be a sideways (flat) movement.
Bitcoin has chosen violence with a sudden move to the downside resulting in a 5% loss in the daily chart. As of press time, the first crypto by market cap seems to be recovering as it moves back to the mid-zone of its current levels. Related Reading | Bitcoin Maximalism – Crypto Survivors and OG’s Could Make a Case to Differ Bitcoin trades at $65,442 still with a 3.6% profit in the daily chart. In the short term, BTC’s price has found support at these levels, but could see further downside if it dropps below $63,000. To the upside, much of the resistance has disappeared and BTC seems....