How the market prices itself

Just read the following explanation on how market pricing works on Reddit. This is brilliant, this explains why some people are willing to bid at the top, sell when rising etc...

"Stop thinking about the price as the "current" price. The price is not a "fixed point" but rather the price is a range between what people have recently agreed on.

The price is like a voting system which is live and constantly changing and it has millions of people voting all the time.

So what is the price for ETH now? Well, we have just recently confirmed that pretty everyone agrees that $200 is too low (it got tried twice, and it got rejected twice). So we know what the "minimum price" is, now it's the turn for the "maximum price" to be determined. The last time we tried, the maximum price was agreed to be ~$300 because people kept refusing to pay more than that (sellers outnumbered buyers at that point).

So we can safely say that at this moment, ETH is somewhere between $200 and $300, and we are currently voting on if that value should change.

If we do break $300, we will keep on trying to find out what the next top will be, and once we find it, a vote for the bottom will start.

But just hitting a price once is a very "weak" vote. Hitting the same price repeatedly means a strong vote."