$BTC $BNB Why people are talking not to buy on round numbers look! Avoiding round numbers when buying or selling cryptocurrency is a strategy used by traders to prevent their orders from becoming part of a large cluster of orders at the same price point. Round numbers like $10, $50, or $100 are psychologically appealing and are often targeted by many traders for their stop loss or sell orders. This can create significant price levels, known as resistance, where a large number of orders are placed, making it harder for the price to move beyond these points.
Moreover, these round numbers can attract the attention of âstop hunters,â who may manipulate the market price to trigger these clustered stop loss orders, allowing them to buy the asset at a lower price before the market rebounds. To avoid adding to the resistance and potentially getting caught in these manipulated movements, itâs suggested to set orders at slightly off-round numbers
Remember, cryptocurrency markets are highly volatile and unpredictable, so itâs crucial to have a well-thought-out strategy and consider the risks involved in trading.
