New to crypto and trading in general, but I have one simple question

New to crypto and trading in general, but I have one simple question.

When the market falls hard, and the price of everything (stocks, crypto, ext.) dips really low, and overall most people panic as their portfolios shrink. Most people then buy at the bottom, knowing that it will eventually return to "normal" and raise in price once again.

What I want to know though is who the fuck is selling at the absolute bottom? Surely it can't all just be emotional trades happening as weak-hands panic sell to cut their losses. I may be overlooking things but shouldn't the market stay low for increasingly larger periods of time, since eventually all of the emotional traders will be driven out, leaving nobody left willing to sell during the lows?

tl;dr: do people actually buy high sell low regularly?

Tl;dr yes

Some1 is always bound to lose on these markets and who do u think it is ? Whales with bns of monies or normies with few k tops? Just imagine playing poker in casino when casino has like 1000x of your cash. They can always bump the price so u have to go all in while they put 0.1%

>Most people then buy at the bottom,
>my face

>have 1.5M in shitcoin
>have 800k in shitcoin
>being stupid enough to risk rest on the notion internet tulips will survive

Yes they panic sell. Having iron hands when you invested $20 doesn't make you king HODL

People are dumb.

I'm shocked how many people are trading crypto who don't have basic computers skills, who can't even do the basic multiplication and division required to know how much money they are gaining or losing.

Crypto is 90% people who are in their teens or early 20s that have no clue what they're doing and think crypto is a magic money machine. When it crashes and they realize it isn't a magic money machine they panic sell to cut their losses.

Some of the people selling at those low prices may have bought lower, and are just cashing out before the price dips to their buying point. SOME. Many people panic sell for fear the investment will drop to 0.

Stop-losses and margin traders being liquidated exacerbates the downturn, which explains people selling in downturns. Then traders being spooked means that there is very little buy-side liquidity, which is how prices drop so precipitously and don't recover for months or years.

These things all apply even to institutional traders, so you see similar effects to the crypto markets where a big percentage of trading probably is just Veeky Forumsnessmen getting scared and clicking really fast.

But you can take advantage of that and make it a magic money machine for yourself.

Pretty much. I don't know how much longer until people catch on and the gains get smaller and smaller though.

What makes crypto more volatile and easier to make money in than the stock market? I ask this as a relative noob. Do you think there's going to be a point where crypto gets to that level?

What I want to know though is who the fuck is selling at the absolute bottom? Surely it can't all just be emotional trades happening as weak-hands panic sell to cut their losses.

Heh it's easy to say especially if you're new to trading. But wait to be caught in a big crash and see how you will react then.

Myself I'm a pretty level-headed trader but I did the unthinkable during my first crash : panic sell during the fall which turned out to be the bottom, fearing that this was it, the whole thing was going to completely collapse. Yeah. That was years ago though and I never did the same mistake again.
There's a first time though.

When is a good indication that there is a real crash that kills bitcoin or whatever shitcoin one could be trading? I don't want to be stuck bagholding.

News affects crypto much more dramatically than stocks and I think a lot of that boils down to inexperienced traders, the uncertainty around crypto currency itself and whales exaggerating the fluctuations. I have no idea about the future of crypto currency though. It's easier to be a reactive trader that a speculative one.

too much greed around and consecutive parabolic rises. They are the first sign of trouble.
Overall you can tell where a coin is going by looking carefully at charts and volumes.

Don't worry though, Crypto can crash to hell, it's not going anywhere and will always rise back with a vengeance. It's simply becoming too huge to be discarded. And Unless you buy near ATH - which is another topic entirely -( FOMO is the biggest danger of trading imho ), you should always be fine. It's a question of patience.

Yes but how long would a crash take to come back from? I'm wondering if Bitcoin is on course to crash and who know how long until it comes back.

>think crypto is a magic money machine
implying it isn't

Gee if only there was an example of bitcoin crashing in the past then rising again which one could take in to consideration when answering that question.

what makes people sale at the absolute fucking bottom is thinking there is a bigger bottom and they have to cut their losses. It's easy as a newfag to look in hindsight and be like haha stupid people.

first off we still have huge swings in crypto, you will never see a bigger stock go up 25% in a day like BTC did yesterday. Why this happens is probably because a lot of people that invested into BTC dont know shit about it and just bought it because they thinks its easy money. Once the price drops they realise it is a volatile market and their palms are sweaty, knees weak arms are heavy.

Basically none of these people even know why BTC are even usefull at all and when something technical like SegWit2x or BIP91 / BIP148 gets thrown around they panic because they realise that they dont know shit and are too dumb to even understand it on a basic level. For them it's just mumbo jambo and they get nervous because they know someone out there understands these things and will take their money if they dont leave as fast as possible.

Basically just a bunch of idiots in the market, if you are invested in BTC specifically and dont have a shortterm and longterm plan then you should get out honestly or just HODL. but if you wanna trade you basically already need a plan that works for all scenarios up to Novemeber/December ready to go.

ok user I can only give you my personal prediction but here you go. this weekend we are gonna go to around 2500-2600 then next week we will see a rise maybe even to an ATH but I would say not quite. After that the weekend before August 1st will be a crash back down to around 2700 or sth maybe lower. Depending on what happens on August 1st and if SegWit2x works out we will either see a moon mission to 3500-4000

after that moon mission expect a hard crash below 2500 or even lower. but it will most likely bounce back in a few months time. BTC is trading so fast and moving up and down so fast I doubt it would take more than a few months to recover from any crash right now unless it's a crash that literally kills crypto which I cant see happening. At most you might have to HODL for ~6months if things get really messy.

Thanks user, I'll keep an eye out for any more info but that looks like a solid plan.