🐂 🐂 When You BUY, It DROPS! It’s something we all experience, here’s what’s really happening and it's a very common experience for traders.
I would love to hear your thoughts and experiences here 👉
Here’s why you might see the price drop after you buy cryptocurrency:
🤔 Supply and Demand Mechanics:
👉Large BUY orders can sometimes push the price up briefly, but afterwards, sellers may make profits or unload their holdings, causing a drop in price.
🤔Market Liquidity:
👉If liquidity is low, your buy might move the price upward, triggering sell orders placed by traders looking to sell at a higher price — adding selling pressure afterwards.
🤔Psychology and Timing:
👉Often, many traders think alike when buying, they do it after a strong upward movement, which might be a turning point or resistance, causing the price to reverse.
🤔Whales and Market Makers:
👉Large players (whales or market makers) sometimes push the price down after many small traders buy in, liquidating their positions and collecting profits.
🤔General Market Volatility:
👉Crypto is a highly volatile and speculative market — drops after a buy are frequently just a normal fluctuation, not a reflection of a big move against you.
✅ Conclusion:
It’s completely normal for prices to drop after you buy cryptocurrency, this happens due to market mechanics, psychology, liquidity, and the strategies of large players.
While it can be frustrating, this is a standard feature of a volatile market. To ease the impact, consider using strategies like dollar-cost averaging, setting realistic entry points, employing stop-loss orders, and focusing on long-term fundamentals instead of short-term moves.
I would love to hear your thoughts and experiences here 👉
₿ Cryptocurrency investments carry risks. Therefore, this is not financial advice (No BSH recommendation). Hence please do your own research (DYOR) before making investment decisions.
