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The bitcoin market is extremely volatile and any event or news can lead the leading cryptocoin either upwards or push it down. Standard methods of technical analysis used in the classical market do not always work and analysts are forced to adjust their forecasts several times a day.
A distinctive feature of the bitcoin market has repeatedly been panic, which forces many small traders to get rid of the asset and go into another currency, losing their deposit. What determines such panic moods?
Any of the analysts seeking to show their competence issues a forecast for which a number of market participants are oriented. And if he is known and enjoy great confidence among the funds, then his attention is riveted. If, based on the made calculations, the leading analyst informs the news portal that the rate is about to collapse, the market begins to fever. Experienced players with a lot of experience, wait if it is really so, and beginner traders massively sell Bitcoin, trying to earn at least something. As a result, one message from the analyst leads to panic.
Panic in the market is formed not only by experts working in the crypto-field, but also by state regulators. It's no secret that their task is to introduce as many rules as possible and put Bitcoin in a subordinate position. If there are new data that the regulator seeks to introduce a restriction on the functioning of the bitcoin market, panic begins to dominate among users. There is no desire to obey anyone, and the fear of losing existing capital forces you to get rid of coins. Almost always it is done by traders who have a small deposit and have little work experience. Large players try to wait for the wave of recession.
Panic also depends on the conscious actions of a player who has a significant Bitcoin reserve. He specifically sells coins, causing a short-term collapse of the market and taking advantage of the moment when the value falls, he buys the currency. Then the price returns to the starting positions, the large player gains profit, and the remaining players lose.
As a result, we can say that the nature of Bitcoin market is characterized by instability and excessively high fluctuations in the exchange rate, so panic will be an inalienable background, where someone makes income, and others ruin.
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