Someone who panic sell there bitcoin because of a dip is definitely making a mistake, because when there is a dip in the price of bitcoin it presents an opportunity for us to accumulate more with a different and more convenient price as well, but I most say it is more common with someone who is new into bitcoin, or probably doesn’t have a little basic knowledge to panic sell at this point in time
You are right ,most people that panic and sell their bitcoins are probably traders which maybe short term investors, when there is dip many investors view it as a chance to purchase Bitcoin at a lower price forgetting that it should be an avenue to accumulate more and hold rather than selling it,but they don’t know that Bitcoin value fluctuate rapidly,but they would be the once to regret later.
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having a clear picture that investing in a longer term is the goal ,and they must make sure daily needs are met
with that it can help in market volatility, all this will contribute to the success of the long term investment .
surely investing in a longer term is the goal, and yeah it is important to make provision for our daily needs but of course that has nothing to do with volatility. volatility of bitcoin is caused by demand and supply. when the demand is higher than the supply it caused a higher volatility or increase in bitcoin price and likewise when the supply is higher than the demand it cause decrease in bitcoin price otherwise known as low volatility. so provision of daily needs has nothing to do with volatility.
You explanation of volatility, BTC prices and supply/demand is a we bit confusing Samlucky O.
Generally speaking volatility relates to BTC price movements measured over time, and so if the BTC price is moving a large amount over a short period of time, then it would be considered to be volatile, and so volatility can be in either direction or both directions, and it can be compared with other assets and/or currencies to say BTC price movements are more volatile or less volatile than some other comparative asset over some given period of time.
Surely it may sound way bit confusing but it depend on your own interpretation. all i was explaining was to let the user know the reason of bitcoin price movement or volatility, although it may not sound exactly the way you expected or it may look contradicting but i am emphasizing from the root definition of volatility. volatility dont just happen without demand an supply. there must be demand to buy bitcoin or any asset and there must be supply to meet the demand by sell, this genedral analysis is the whole concept of volatility, without these how can any asset be volatile?
dictionary definition of volatilitya tendency to change quickly and unpredictably
Ai reviewVolatility in a financial context refers to the degree of price fluctuation or variation of an asset's price over a specific period. It's a measure of how much an asset's price moves up or down, indicating the risk associated with that asset. Higher volatility generally means greater price swings and thus higher potential gains or losses. Notethe fact is that this price fluctuation or price changes that occurs within a specific period of short or long term is controlled by demand and supply which is proportional to buy and sell. i understand that there are a lot of factor that influences the price of bitcoin apart from demand and supply like regulations, numbers of competitors and many more, all are just factors that causes increase and decrease in bitcoin adoption but demand and supply is the focal point because all other factors only help to increase demand and supply that is where i talking about.
Your proclamation that high or low volatility has to do with BTC price direction is not correct, since high volatility would be the BTC price moving a lot over a given period of time, and low volatility would be the BTC price not moving very much over a given period of time, and whether volatility is high or low does not have to do with BTC's price direction.
i am not disputing the fact that my proclamation is not wrong but i am still curious to know if demand and supply has nothing to do with bitcoin price changes weather moving a lot over a period of time or just price movement within a short period of time.