Here’s Why Bitcoin Breaking Higher Now Would Trigger a Massive Move
Why does it make sense that if the price of one of the largest currencies (The United States Dollar) continues to drop like a rock, there will be a massive sell-off on all other major currency pairs as well? Well for one thing it is an indication that the market does not trust the US Dollar any longer, and therefore it is starting to look for a hedge in the form of a new “Safe Haven” currency. The US Dollar as a result is being left behind in this regard.
It is also safe to assume that there is a lot of money on hand being held back from selling at the present time because many people are afraid that it could be huge amounts of money lost, or even a very large sum of money lost, if a large move occurred. In the worst case scenario, if a very large move occurs in which the value of one of the major currencies dropped to below twenty-five percent of the current price, then you could expect to see a significant amount of money being pulled out by the major investors to cover their losses.
This means that you would have a huge amount of money that would be lost, and a lot of people who were holding their money at a loss would start to panic, and they would start to liquidate their money. If the price of the currency was to move down to a level below twenty-five percent of the current value, then that would be an indication that the price had reached a point of extreme danger and would likely experience a large sell-off.
If you think about it, if you were a huge investor in the stock market and you were told that you needed to liquidate a large amount of your capital, and you were told that you would likely lose a great deal of money doing so, you would not do so. Even if the stock market did experience a large move, and it was a huge move, it would be very unlikely that it would happen to your portfolio, because you would realize that you made the right decision at that time and chose to not put your money in that stock.
With the US Dollar is a safe haven, and with the price of one of the largest currencies being falling rapidly, it is very possible that a large move is in the offing, and it is very probable that the value of one of the most important currencies will be left behind. In addition to that, you would also have to realize that if that price drops too far enough it could make it impossible for people to hold back and sell their holdings, and the market would end up collapsing.
Therefore, if you are wondering why does it make sense that if the price of one of the largest currencies is dropping sharply, and if you are wondering why would it be a good time to buy a currency when there is no indication of a large break out coming, then you might want to consider the answer to that question, and you might be surprised at how much it would help to know the answer to that question. It could make sense to make a move in a currency now, but the question that remains, will it help to prevent a massive break-out?
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