I think every time BTC hit those significant milestones like 1 USD, 10 USD, 100 USD, 1000 USD, 10,000 USD, and 100,000 USD for the first time, it turned out to be pretty bad timing for those looking to invest. It feels like these big round numbers are just too much for the market to handle, and it takes a while for things to settle down.
Hypothesis 1: When BTC reached those milestones, the returns for short-term investments (around two months) were way lower than average for that period.
Hypothesis 2: The same goes for medium-term investments (about two years); returns were also below average when BTC hit those significant price points.
Who knows, maybe when BTC finally hits a million dollars, that’ll be the perfect time to short it.
Just a reminder: when BTC first hit 1 USD on February 9, 2011, it marked the start of a bear market that lasted two months (from February 17 to April 17, 2011), with a low of 0.58 USD in early April. That was probably the first real chance for someone to actually lose money investing in BTC.
BTC bears seem to favor hitting round numbers like 1, 10, 100, 1000, 10,000, and 100,000 USD
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It matters and it doesn't, globally the currency used to buy Bitcoin wont just be US dollars. I realize that is the dominant currency or global reserve main currency but the world is a big place and that is only one country. We don't stand still, we're pricing the future ultimately not the legacy of ww2 FIAT etc.
There are many perspectives, its psychological rather then actual resistance or special significance imo. People will look up and say oh its into five figures now, thats big and maybe they sell some. Ironically we can expect some selling on every 'event' number like this. I also think it doesn't matter, the effects of these round or multiple zero numbers is just passing not lasting.
There is no one single figure to price BTC and it has its own value, its not even FIAT at all. I wouldn't weigh your value or even body weight with a bag of feathers, it would match so badly and be a silly exercise. I kinda think this obsession with what is the dollar price when BTC is nothing to do with all that politics in its blockchain, to me its oil and water and will never fit right.
Price is just a label, don't get too caught up with the number has to matter most of all; it doesn't.
Anecdotally you can't short with much leverage. You can 1-3x down though at most.
If you shorted bitcoin going over $10k iirc we hit $13k before falling and then for $100k we almost hit $130k before falling so there's drop risk at each psychological level.
Every new ath is typically shortable though, especially if a fall has already started/when the momentum starts to grow but then it becomes a question of when to stop shorting.
Its psychological number, a round number like 100k is always deemed to have some resistance to it and could also be a support as well.
There are traders out there who just like shorting on a round number without reason at all and and because its round, the same way humanity like shiny thing like diamond or gold. Its just the oonga boonga way, maybe primal instinct.
After Bitcoin surpassed 100,000, more than a trillion dollars were withdrawn. This is the all-time high for Bitcoin sell-offs. There are no inflows into ETFs that fueled the growth in the last cycle. Speculative trading is underway. People are buying below 70,000 and selling above it.
If the US stock market bubble bursts, Bitcoin's growth can be forgotten for a long time. And now is the best chance of a burst. Russia and China are no longer buying US Treasuries. Central banks in other countries prefer to buy gold. Trump could have been saved by winning the war in Iran. But that's not happening. I think Middle Eastern countries have also stopped buying US Treasuries. And that's what has sustained the US economy for the past half-century.
Therefore, it makes sense to keep only half of your Bitcoin and convert the other half into something else.
All attributes of the bitcoin price psychological resolutions as stated is the notation that proves bitcoin to be a valuable asset that increases over time in the long run.
And as a highly volatile asset, based on its trajectory volatility trends, it becomes very risky to be treated for a short term means of storing value.
It's a financial asset projected to be community users and criticism driving force whereas, prices can be manipulated over short term sentiments with the potential to surpass its previous and present prices in no predictable timeframe.
silentchainHero Member
Posts: 473 · Reputation: 2317
#7Oct 19, 2020, 02:11 PM
In the other hands they just set up a price margin at a significant range.
The consequences is always at their detriments because when too much anxieties is being invested, you don't only play around with your funds but also risking your emotions because most traders who are impatient to actualize their goal within the short term are forced to exit if after direction of market movements does not attain the trending momentum to their favour. Else, a round figures is usually the boiling point for anyone investing in bitcoin.
P/E ratios are one of the highest, therefore the stock market crash is increasingly probable. If it happens, the altcoins will fall close to zero which closes the crypto second episode (2018-...).
Bitcoins fall is more limited as the 2020 March micro crash revealed - from February 14, 2020 to March 14, 2020 Standard and Poors 500 lost 1/3 and Bitcoin lost 1/2.
These are round numbers that is respected by most traded markets. They are significant in the sense that market participants target them for entries and take profits. It is when a large number of people target those significant numbers for take profits that bears dominates the market and most times the market end up entering prolong bear market because the funds taken out of the market fo not get back into the market immediately.
We have a "milestone" in ATH already, and usually it has nothing to do with 100 or 1000 or 10k or 100k. Because I was here in most of them and I can say that we didn't just break 100, we went to 140+ levels, we didn't just break 1k we reached 1.5k levels and we didn't just reach 10k+ we reached 19k and we didn't reach 100k we reached 125k.
As you can see, it doesn't just do something like that for the short term, we reach even higher before we start to go down. This is why we shouldn't be considering these numbers as milestone since our ATH reaches a lot higher.
From 10, 1k and 10k the days to the great bear were very very limited, the bear that followed 1 and 100 was obvious but not so long-lasting....
The 100k bear took more time to emerge and is only baby by now.
You have to admit that selling at these points (especially at 10, 1k and at 10k!) was a remarkably great deal
alex.shardLegendary
Posts: 1019 · Reputation: 5623
#12Oct 22, 2020, 03:44 AM
While 100K and before than 50K should have been a good physiological resistance, but if you remember, the bitcoin surpassed them pretty quickly when it crossed 50K and 100K for the very first time. However, later it became quite a big support and resistance too, and that's understandable as it's a round number and people tend to set sell and buy orders at this number.
However, the experienced trader will usually set their take profit or stop loss, just above or below it, so their order gets triggered before the masses who have placed the order right at these whole numbers.
I first time touched 100K on December 5, 2024 - reaching 108K in about ten days and fell back until the end of January, 2025 when BTC second time tried 100K-105K less than a week and fell back to around 80K until the third attempt in May after that remained relatively stable (100-125K) for a half year from May to November 2025.
50K was not as hard as 60K in 2021.
In trading, this effect is known as the 'magic of round levels.' It works not only on long timeframes but also intraday price levels divisible by 500 or 1,000 consistently stop and reverse Bitcoin's price.
I have a trader friend who works exclusively with round levels, combined with just one moving average used to verify the trend and he always closes in profit. Too bad he doesn't give away all his secrets
I would say that people are the ones that care about round milestones, not Bitcoin. Obviously there is a psychological aspect when it comes to investing (those who doubted the four year cycle are learning that now) and people look for milestones to take profits. That is a trend that probably won't disappear, but I don't know how useful it really is. I do like that the next big round milestone is a million dollar BTC though. Perhaps that is why people talk about it so often as if it were attainable in the near future.
That is quite very correct with me, the trajectory volatility of the Bitcoin market is extremely breaking the resilience of every benchmark resistance and so on price could fall again either sooner or later.
I think the round number seems a point of attractions simply because a lot of people that counts in numbers would always love it to balance the measurement in a round number or within even numbers.
Both targeting odd or even numbers for traders could still be a trap for them. I have also had experience of couple of traders with their preference of number.
Investors expectations would also go on the round number that is why $100K was very point of doubts and hopeful.
$1M has also been a trending in the long term Speculation.
We have reached 100k for a long time, and now you can find predictions of 1000000 for Bitcoin.
I found an incredibly positive study by MDPI that presents a model of Bitcoin supply and demand, suggesting that aggressive institutional accumulation and "withdrawal" of funds into long-term storage can lead to a significant shortage of supply. Under certain parameters, the authors predict a hyperbolic trajectory that could potentially push Bitcoin to $1 million by 2027 and $5 million by 2031.
I hope I'm wrong, but $1 million by 2027 seems a bit early. However, if this happens, I believe Lamborghini will be in high demand
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