Genuinely confused - is there a typo in the blog, or am I missing a part of the picture?
Haejin says "the sellers have been giving all they had to try and cause a Bitcoin crash"
Does Haejin mean buyers?
If the sellers are the ones holding the coins, surely they want the price to go up - the opposite to a crash. It is in the interests of the buyers to have a crash so that they can nab some cheap coin.
Not trying to pick holes - genuine question as I fear I'm missing something otherwise.
Sellers want the price to go down. IE they short it at 15k and want it to go to 10k to make 5k profit on the drop.
Buyers want price to go up. So they can sell higher. Forget about BTFD it's not an investment method it's a fad. You're thinking of acquiring new positions, buyers/sellers are people already in positions.
As price falls, buyers get frustrated by loss or inactivity due to flat price. This causes them to liquidate their positions (sell), converting them into sellers.
When everyone is a seller, market can go up. When everyone is a buyer, market goes down because no one is left to drive up the price.
Markets are a giant psychology experiment and often work inverse. You're either a contrarian or a victim. Enjoy the ride.
Thank you for taking the time to answer my question. It seems I was (still am!) missing the bigger picture and need to adjust how I look at these situations.
NP. Anything else just ask.
What is the name of this strategy..so i can read more..