So firstly lets start from coin daily volume.
You should know that the bigger daily volume ,the better, just let’s calculate how much money is traded if daily volume is 200BTC. So at current rate bitcoin now is about $10k, so 200 multiply by 10k equals to 2m million $. So just imagine, 2 millions dollars are traded each day with this coin, absolutely insane right. Tomorrow will be again about 2 millions, next day again the same or bigger and so on and on.
So let's imagine that price start falling because of some bad news about the coin or maybe some person who we are (traders) calling whale just sold very big amount of coins and price dropped hardly. And now human psychology start playing his role. In trading cryptos, there are so many newbies, people who don’t know much about trading and just want to get rich quick, so they invested in a coint and hopped that the price will increase and they will sell the coin for some nice profits, so after price dropped, these newbies start panicing because their investment start loosing value. So few people start panic a lot and start selling the coin because they think it could drop more and their investment will lose more value, so they selling to make minimum loss, after they sold the price again decreased and other people also starting selling the coin and this whole situation become like snowball, more and more people selling as they thinking that it’s the end of the world and the coin will die, so they trying to sell as fast as possible to minimize the loss.
But what people who are experienced in trading, who knows how everything works do? Whats right, they are waiting with full pockets of bitcoins to step in and start buying the coin for low price which newbies just made because they panicked and sold their coins.
You need to understand that if coin daily volume is 2 millions dollars, its impossible to coin NOT to recover after dropping, as there are full of buyers who will grab the coin if they see that the price dropped 10% or more.
But what people who are experienced in trading, who knows how everything works do? Whats right, they are waiting with full pockets of bitcoins to step in and start buying the coin for low price which newbies just made because they panicked and sold their coins.
You need to understand that if coin daily volume is 2 millions dollars, its impossible to coin NOT to recover after dropping, as there are full of buyers who will grab the coin if they see that the price dropped 10% or more.
DO NOT PANIC GUYS ! Sharks just waiting to grab your coins for cheap !