I think that this video explains in a visual sense a lot of the daily and even weekly movements in the crypto markets (as well as the stock markets).
Have a watch first and then read my thoughts below. It is kind of mesmerizing, I hope you enjoy it.
License = Creative Commons Attribution licence (reuse allowed).
So, what we have here in this video is a flock of starlings.
They are evolutionarily driven to flock and fly together under certain circumstances.
Note that there is no leader in this flock (as there is for Canada Geese). This is like the crypto markets. Instead they seem to pick up cues from their nearest neighbour birds (as in the crypto markets).
The birds are tracking their nearest neighbours and this means:
- that the flock can turn on a dime when enough birds decide to do that (i.e. market conditions change),
- the flock can go up (prices go up),
- it flock can go down (prices go down),
- there is a basement level for the flock (the ground) as there is for stocks (zero value).
- different parts of the flock can briefly do different things (there are multiple players in all markets: bulls, bears, contrarians, weak hands etc.)
If you feel like it, post below your thoughts and how you think this mimics people's behaviour in the markets.
Thanks for visiting my post - Procrastilearner