THIS WILL TEACH THE NEW TRADERS THE REALISTIC PERSPECTIVE ABOUT THE CRYPTO MARKET!
Crypto market economics tend to depend on the buyer/seller decisions and how the overall supply and demand would affect these decision-makings.
Marking the bottom part of the market as the demand as it signifies the increasing buying interest leading to intensifying the buying pressure. Creating more opportunities for buyers to bargain the market for a better or lesser price.
Upper part of the market foretells a selloff occurring as the supply has reached a certain height telling sellers to take advantage of their current holdings and the high price.
These 2 parts of the market turns several waves of buying and selling orders into visible market graphs/illustrations.
As the market takes in buying pressure, price heats up and rises. More demand can lead to a control of the market by increasing the available price.
With selling pressure, price cools down and falls. More supply will be the indication of a falling interest in the market leading to lesser price.
Take a look at the graph above.
Here's the existing 100, 000-300, 000 supplies of Bitcoin (BTC) in the market and the 75, 000-88, 000 price of these BTCs.
The demand and supply arrows indicate an increasing/decreasing movement/wave in the market.
When the supply reached a great height of 300, 000 BTC owned by the buyers. There was a need to bring these supplies down to a reasonable number. There became visible the falling price from 88, 000 to 81, 500.
When the interest became clearer and more demand was present for the 300, 000 BTC that was needed to be bought from the market. The price went up from 75, 000 to 81, 500.
Both of these had the motivation of buying at the least possible price and selling at the highest possible price.
Both also had the equilibrium for price in between 75, 000 and 88, 000 which is the 81, 500. As well as the equilibrium for the supplies of BTC at 200, 000.
These are the in-betweens and the area where stability of price will happen.
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