Hello All,
I'm trying to understand the world of crypto. Everyday goes by and we are all still reeling in from the recent crash, correction, dip or whatever you want to call it. What we have seen is that if bitcoin slumps, it drags the rest with it- sometimes, but not all the time. It also has the potential to benefit altcoins- sometimes, but not all the time.
Pricing, from what I've learned so far or have observed are determined by the following factors:
#1 Bitcoin.
Bitcoin is usually the trading pair. If people can buy bitcoin and nothing bad is happening then all looks good and people are happy trading.
#2 Trading.
Buyers are willing to bid higher pricing. Of course trading is susceptible to pumps and dumps. However, I won'd get into that realm much.
#3 Mining.
From what I understood, especially from all the hype around Sia being caught off guard by Bitmain A3 ASIC miners, is that miners can control the blockchain and somehow they can control the price. I suspect it is because they want a good return on their block rewards and hold onto the coin forcing buyers to up bid, if the supply is in the favor of miners.
However, there may be another underlying cause to make prices go sky high. That is a sell wall. Basically, a sell wall is when many holders of a coin set their prices to a certain point. If enough sellers decided to sell their coin at a higher rate, a sell wall would emerge. They will undergo a short period of buyer resistance. Once that barrier is broken, the coin goes to the moon.
I have a hunch that everyone kinda understands that in the back of their mind, but no one puts it to action. It makes me wonder, why such holders of coin who want a strong recovery after the crash don't seem to do the opposite of what the crash asked us to do by selling in a panic? Why don't sellers fight off a crash. If negative news spreads, why don't they up their prices? How come sellers have not increased their price?
Let's put it this way. If you believe bitcoin is going to reach $320,00 as the twins claim, then why hasn't the majority of btc holders set their price to $320,000? What are they waiting for?
Moreover, the altcoin community is usually negatively affected by slumps in bitcoin. Why don't altcoin holders who truly believe that their coin is going to the moon, give their coin some fuel and give it the astronomical pricing they're looking for?