An exchange doesn't set a price at all. It provides a framework for customers to buy and sell coins to each other, at whatever prices the buyers and sellers find mutually agreeable. The exchange itself does not buy or sell, and the prices it quotes are just a report of what its customers are doing right now Credit: Nate Eldredge
Still, I have questions.
Within the last few weeks, bitcoin drops to $33,000 from $50,000. Even before it went maximum of $69,000.
Just assume the current price of bitcoin is $50,000. According to what I understood, to it becomes $49,000 someone needs to buy bitcoin for $49,000, and someone needs to sell him to for $49,000.
There will be a lot of people who need bitcoin for $49,000 since the current price is $50,000. But who wants to sell bitcoin for $49,000 instead of $50,000 since the current price is $50,000.
For example, if I check the open orders of exchange like Binance, all open buy orders are below the market price and all open sell orders are above the market price. So I can't understand how the bitcoin price is dropping?