Probably I am being stupid, but I'm having a hard time understanding some basics of cryptocurrency trading. These are probably all variations on the same confusion or misunderstandig:
- Does a high number of Limit Sell-orders being executed mean there is a high Sell-volume? The more people are buying a cryptocurrency, the more Limit Sell orders are being fulfilled - why is a high Sell volume then regarded as a negative "sell-off"?
- When Sell Limit-orders are filled the lowest priced Sell Limit-orders are constantly removed leaving only higher priced Sell Limit-orders available to be filled - so why does a large Sell volume result in lower prices and not higher?
- Is buy/sell volume only calculated from limit-orders? Isn't a market order both "buy" and "sell" equally? There cannot be a sell without a buy?
- Similarly, when a Limit Sell-order is executed, it means someone is buying it. So why is it then a sell order and not a buy order?
My mind is running around in circles - hopefully better minds can help me understand!
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source https://www.reddit.com/r/btc/comments/as9u68/please_help_me_understand_some_basics/
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