Bitcoin Forum

http://wmmusic.nl/codexamples/bitcoin/bitcoin%20bubble.png
Today the price had a significant dip.

I've already heard many speculations about the reasons for it. Some say it's because of Black Friday, others because of this fake disclosed private addresses list. (http://directory.io)

What's your opinion? What caused it?

~W-M

It wasn't a pop. It was a bleed. A long overdue correction due to a lightning fast unhealthy rise.

It wasn't anything but weak hands being flushed out. Expect another large jump ATH this week.

Those "weak hands" that are "shaken out" are the ones you so dearly need for mass adoption, remember that.

What's wrong with being a weak hand? They will either learn the lesson, or go with their money in fiat.

Every time it happens, more and more people become immune to these flash-crash manipulations.

I suspect that even some "manipulators" have losses when they dump huge amounts to initiate panic, but then cannot re-buy at reasonable price because other traders just rush buying "cheap coins".

Don't we need mass adoption? That being, not scaring away the 'weak hands'? Everybody here wants the 1 million USD bitcoin, yet everyone gloats when the noobs get hurt in crashes like these. It's a bit dual, isn't it?

Noobs are playing a game they chose to play. Most of them aren't even aware they are playing a game. All market based trading is a zero-sum game. Someone has to lose when someone else wins. Either accept it or go play some Co-Ed Volleyball where they don't keep score.

I remember when $500 was the crazy ceiling limit that every said it wouldn't hold to..

I LOLed at the bolded part.  :D

I agree the U.S. dollar and other fiat currencies are unhealthily dropping in value in relation to Bitcoin.

Hey I'm all about playing this game, don't get me wrong. It just amazes me why everyone keeps scorning the noobs while they so dearly need them for mass adoption.

Also, zeroday, while the flash-crash may be over, this one was unusual - earlier, flash-crashes only followed parabolic unsustainable rises. Now it followed a slow topping-out and start of a slow descent.

We'll see how bullish you're staying the next few weeks.

there was a pop probably because everyone was sitting around expecting one. is it a case of self-fulfilling prophecy? it didn't move THAT much anyways.

Just because people differ on view doesn't constitute it as "scorning".

EXAMPLE:

Noob thinks it is time to sell.


I think it isn't.


Noob sells.


I LOL.

(that isn't scorning).

 :D

Nobody was expecting a pop. Everybody was expecting a bubble (which is why a bubble didn't happen first). Have you not seen the extreme mania all over these forums? It was going to 10.000 by christmas.

i've seen tons of threads and predictions of "it's grown too much, it simply cannot sustain its current rate of growth.. but nothing grows that fast."

I say it could reach $10,000 by June 2014.

Here's how I saw it: When BTC dipped a bit in China and went to 5400 CNY gox went down. Many people were watching Gox. China went back up to 5500 while Gox was still down and lagging. Now, while price was already recovering, a whale on BTC-e decided to put up a huge sellwall. Chart looked like a bloodbath for a while causing panic although China was way back up and even Gox price recovered. Whale went shopping for cheap coins and of course, everything was back on track right before bed time.

Here's how I saw it: $$$

BTCBTCBTC ;)

I am not convinced this correction is over.  All the exchanges look like they want to test the lows again to me.

Of course, the one thing that could stop this would be new money coming into the banks in about 4 hours.

I stopped watching gox's price. China looking robust.

bitcoin cant go up from 1000 to 10,000 without some dips, would be suspicious ::)

How is China looking robust? The chart looks like it wants to retest low. If it breaks below 5968, this is going to go lower.  In fact, next stop would be around 5000.  I'm not rooting for it, but we need to see some follow through on this recovery over the next 10-12 hours.

Any price above 5400 CNY is a recovery from that weekend dip. If it goes below 6000 you might right. But I wouldn't bet on it.

Really i wouldn't call this even a correction, just a small dip, the price went down quick a couple of times and then went up quicker. I mean if you slept through it or you were walking your dog for a couple of hours for example and then checked the prices, you wouldn't have even noticed this happened! you'd be like "oh it dropped like $50 since i last saw it, k cool" but that's it.


We might see a real correction in the coming days.

You're asking the wrong question. Why WOULDN'T it pop? Every indicator was pointing towards a correction - including the almost cartoon-like bullish sentiment on this forum a few days ago.

So, did it help against the sentiment? :) If anything, such a "crash" and immediate recovery reinstates it firmly - confirming, that 1k is not a fluke or a bubble, but a solid price foundation for the coming rally.

About the pop, wasn't the panic caused by some dumbasses believing that directory.io would lead to all possible bitcoin private keys being leaked? Was glad to see common sense winning quickly.

Well , looking at the charts seems like the pop is turning into poop and splashing all over.

Well that's an axe that swings both ways, if 1k doesn't doesn't stick then it's pretty much a confirmed bubble.

Why the pop?
Because sheep marketplace is down:
1) They dumped 5400 btc so the price dropped
2) Users of the site doesn't need their bitcoins anymore so they started selling

If we want mass adoption in our lifetimes, we need the shakeouts.  Each time we get a new group of people, they need to learn not to panic every time the price stops moving up.  If we didn't have shakeouts, we would have a panic of epic proportions once we reach saturation.  I'm talking, a 95% drop that scares the public away from bitcoin for a generation.  It won't kill BTC, but you can kiss mass adoption goodbye for a few decades.

It wasn't that bad either, already back around $1000,- and fairly stable. Will hit 1200 again this month I think.