Bitcoin Forum

Economy => Speculation => Topic started by: Armando on June 13, 2014, 03:22:39 AM



Title: Bad news from China causing panic sell again?
Post by: Armando on June 13, 2014, 03:22:39 AM
Found an interesting post on one blog:

Quote
As Caixin, media group providing financial and business news, reports, The People’s Bank of China issued a document on further consecutive prevention of risks associated with Bitcoin.
Chinese authorities’ regulation of Bitcoin has been strengthened on 3d of December, 2013, when The People’s Bank of China and five associated ministries issued “Prevention of Risks Associated with Bitcoin”.
It was required that financial and payment institutions hadn’t to use Bitcoin pricing for products or services, hadn’t to buy or sell Bitcoins, hadn’t to act as a central counterparty in Bitcoin trading, hadn’t to offer insurance products associated with Bitcoin, hadn’t to provide direct or indirect Bitcoin-related services to customers, including: registering, trading, settling, clearing or other services; accepting Bitcoin or use of Bitcoin as a clearing tool; trading Bitcoin with CNY or foreign currencies; storing, issuing Bitcoin-related financial products; and using Bitcoin as a means of investment for trusts and funds.
In March The People’s Bank of China issued “Circular on Further Strengthening Bitcoin risk prevention work”, the document required banks and third-party payment agencies to close all trading accounts within the territory of more than a dozen Bitcoin platform.
In mid-May there were already 13 banks (including five state-owned commercial banks and joint-stock commercial banks mostly) and partial payment institutions announced that hadn’t longer bitcoin trading accounts.
Currently 15 bitcoin exchanges of China were reviewed to exclude the possibility of access to the network. Among them such large-volume exchanges as BTC China and OKCoin. As soon as this news came, rumors of the possible closure of all Chinese Bitcoin exchanges spreaded immediately, and Bitcoin prices fell more than 10%. Likely with the beginning of a new day this tendency will increase.

Original post in english found here: http://ecurrency.ec/2014/06/%D1%80%D1%83%D1%81%D1%81%D0%BA%D0%B8%D0%B9-%D0%B4%D0%B5%D1%8F%D1%82%D0%B5%D0%BB%D1%8C%D0%BD%D0%BE%D1%81%D1%82%D1%8C-15-%D0%BA%D0%B8%D1%82%D0%B0%D0%B9%D1%81%D0%BA%D0%B8%D1%85-bitcoin-%D0%B1%D0%B8/

That blog also has a link to original post from Chinese website. Seems legit to me, but the strange thing is that CoinDesc and other major blogs know nothing about it.

I bet here are many traders from China, what's happening there? Any proof or rebuttal from CEOs of local exchanges maybe?


Title: Re: Bad news from China causing panic sell again?
Post by: Bitcoin_is_here_to_stay on June 13, 2014, 03:24:55 AM
Found an interesting post on one blog:

Quote
As Caixin, media group providing financial and business news, reports, The People’s Bank of China issued a document on further consecutive prevention of risks associated with Bitcoin.
Chinese authorities’ regulation of Bitcoin has been strengthened on 3d of December, 2013, when The People’s Bank of China and five associated ministries issued “Prevention of Risks Associated with Bitcoin”.
It was required that financial and payment institutions hadn’t to use Bitcoin pricing for products or services, hadn’t to buy or sell Bitcoins, hadn’t to act as a central counterparty in Bitcoin trading, hadn’t to offer insurance products associated with Bitcoin, hadn’t to provide direct or indirect Bitcoin-related services to customers, including: registering, trading, settling, clearing or other services; accepting Bitcoin or use of Bitcoin as a clearing tool; trading Bitcoin with CNY or foreign currencies; storing, issuing Bitcoin-related financial products; and using Bitcoin as a means of investment for trusts and funds.
In March The People’s Bank of China issued “Circular on Further Strengthening Bitcoin risk prevention work”, the document required banks and third-party payment agencies to close all trading accounts within the territory of more than a dozen Bitcoin platform.
In mid-May there were already 13 banks (including five state-owned commercial banks and joint-stock commercial banks mostly) and partial payment institutions announced that hadn’t longer bitcoin trading accounts.
Currently 15 bitcoin exchanges of China were reviewed to exclude the possibility of access to the network. Among them such large-volume exchanges as BTC China and OKCoin. As soon as this news came, rumors of the possible closure of all Chinese Bitcoin exchanges spreaded immediately, and Bitcoin prices fell more than 10%. Likely with the beginning of a new day this tendency will increase.

Original post in english found here: http://ecurrency.ec/2014/06/%D1%80%D1%83%D1%81%D1%81%D0%BA%D0%B8%D0%B9-%D0%B4%D0%B5%D1%8F%D1%82%D0%B5%D0%BB%D1%8C%D0%BD%D0%BE%D1%81%D1%82%D1%8C-15-%D0%BA%D0%B8%D1%82%D0%B0%D0%B9%D1%81%D0%BA%D0%B8%D1%85-bitcoin-%D0%B1%D0%B8/

That blog also has a link to original post from Chinese website. Seems legit to me, but the strange thing is that CoinDesc and other major blogs know nothing about it.

I bet here are many traders from China, what's happening there? Any proof or rebuttal from CEOs of local exchanges maybe?

Where have you been? Price falling is because FBI will sell Silk Road btc by the end of June.


Title: Re: Bad news from China causing panic sell again?
Post by: Armando on June 13, 2014, 04:14:38 AM
Found an interesting post on one blog:

Quote
As Caixin, media group providing financial and business news, reports, The People’s Bank of China issued a document on further consecutive prevention of risks associated with Bitcoin.
Chinese authorities’ regulation of Bitcoin has been strengthened on 3d of December, 2013, when The People’s Bank of China and five associated ministries issued “Prevention of Risks Associated with Bitcoin”.
It was required that financial and payment institutions hadn’t to use Bitcoin pricing for products or services, hadn’t to buy or sell Bitcoins, hadn’t to act as a central counterparty in Bitcoin trading, hadn’t to offer insurance products associated with Bitcoin, hadn’t to provide direct or indirect Bitcoin-related services to customers, including: registering, trading, settling, clearing or other services; accepting Bitcoin or use of Bitcoin as a clearing tool; trading Bitcoin with CNY or foreign currencies; storing, issuing Bitcoin-related financial products; and using Bitcoin as a means of investment for trusts and funds.
In March The People’s Bank of China issued “Circular on Further Strengthening Bitcoin risk prevention work”, the document required banks and third-party payment agencies to close all trading accounts within the territory of more than a dozen Bitcoin platform.
In mid-May there were already 13 banks (including five state-owned commercial banks and joint-stock commercial banks mostly) and partial payment institutions announced that hadn’t longer bitcoin trading accounts.
Currently 15 bitcoin exchanges of China were reviewed to exclude the possibility of access to the network. Among them such large-volume exchanges as BTC China and OKCoin. As soon as this news came, rumors of the possible closure of all Chinese Bitcoin exchanges spreaded immediately, and Bitcoin prices fell more than 10%. Likely with the beginning of a new day this tendency will increase.

Original post in english found here: http://ecurrency.ec/2014/06/%D1%80%D1%83%D1%81%D1%81%D0%BA%D0%B8%D0%B9-%D0%B4%D0%B5%D1%8F%D1%82%D0%B5%D0%BB%D1%8C%D0%BD%D0%BE%D1%81%D1%82%D1%8C-15-%D0%BA%D0%B8%D1%82%D0%B0%D0%B9%D1%81%D0%BA%D0%B8%D1%85-bitcoin-%D0%B1%D0%B8/

That blog also has a link to original post from Chinese website. Seems legit to me, but the strange thing is that CoinDesc and other major blogs know nothing about it.

I bet here are many traders from China, what's happening there? Any proof or rebuttal from CEOs of local exchanges maybe?

Where have you been? Price falling is because FBI will sell Silk Road btc by the end of June.

I am not sure that FBI clearance sale can seriously affect the price.

I believe people who will buy big amounts of coins close to market price (as I can remember, this is going to be an open auction) will not dump it right after purchase. Why they will want to loose money? Also, there are not so many exchangers with enough liquidity and reliability to handle many big sales orders at once. Withdrawing huge amounts is also not so easy, you should have nice relationships with bank in loyal jurisdiction, that also "likes" bitcoins.

Correct me if I'm wrong, but I can't imagine who will spend five or six figures amounts for bitcoins and sell them with loss right after that, just to lower the price?


Title: Re: Bad news from China causing panic sell again?
Post by: Kluge on June 13, 2014, 04:20:24 AM
CNY "crash" is lagging behind USD "crash." I'm pretty sure the Chinese have better and faster access to news affecting them. Therefor, not China. (or it's Westerners over-reacting again, which is always possible, but this is the first I've seen of this news)
stamp dropped 630 to 550 (lost 13%)
BTC-e dropped from 632 to 560 (lost 12%)
bfx dropped 644 to 575 (lost 11%)
okcoin dropped 4.022 to 3.700 (lost 8%)
huobi dropped 4.023 to 3.700 (lost 8%)
btchina dropped 4.026 to 3.700 (lost 8%)
(Numbers calculated from past 24 hour max and min as reported on bitcoinity)
(if you look at charts, you'll see China didn't drop first, either)


Title: Re: Bad news from China causing panic sell again?
Post by: Armando on June 13, 2014, 04:27:56 AM
CNY "crash" is lagging behind USD "crash." I'm pretty sure the Chinese have better and faster access to news affecting them. Therefor, not China. (or it's Westerners over-reacting again, which is always possible, but this is the first I've seen of this news)
stamp dropped 630 to 550 (lost 13%)
BTC-e dropped from 632 to 560 (lost 12%)
bfx dropped 644 to 575 (lost 11%)
okcoin dropped 4.022 to 3.700 (lost 8%)
huobi dropped 4.023 to 3.700 (lost 8%)
btchina dropped 4.026 to 3.700 (lost 8%)
(Numbers calculated from past 24 hour max and min as reported on bitcoinity)
(if you look at charts, you'll see China didn't drop first, either)

Can't disagree, so it really more likely that we have panic sell caused by "FBI sell" news. Damn panic sellers =)


Title: Re: Bad news from China causing panic sell again?
Post by: Kluge on June 13, 2014, 04:30:09 AM
CNY "crash" is lagging behind USD "crash." I'm pretty sure the Chinese have better and faster access to news affecting them. Therefor, not China. (or it's Westerners over-reacting again, which is always possible, but this is the first I've seen of this news)
stamp dropped 630 to 550 (lost 13%)
BTC-e dropped from 632 to 560 (lost 12%)
bfx dropped 644 to 575 (lost 11%)
okcoin dropped 4.022 to 3.700 (lost 8%)
huobi dropped 4.023 to 3.700 (lost 8%)
btchina dropped 4.026 to 3.700 (lost 8%)
(Numbers calculated from past 24 hour max and min as reported on bitcoinity)
(if you look at charts, you'll see China didn't drop first, either)

Can't disagree, so it really more likely that we have panic sell caused by "FBI sell" news. Damn panic sellers =)
There's another theory floating around suggesting the price crash is intentional by True BelieBTCers to force the FBI to receive less money for the coins. I'm not sure if the theory's serious or not -- Kashmir floated it in her Forbes article on the DPR coins.


Title: Re: Bad news from China causing panic sell again?
Post by: Armando on June 13, 2014, 06:15:01 AM
There's another theory floating around suggesting the price crash is intentional by True BelieBTCers to force the FBI to receive less money for the coins. I'm not sure if the theory's serious or not -- Kashmir floated it in her Forbes article on the DPR coins.

This is realy crazy if true =) Whoever is doing this - you can just send me your bitcoins instead of burning it to lower the price, I promise to keep it away from FBI  ;D


Title: Re: Bad news from China causing panic sell again?
Post by: Glizlack on June 13, 2014, 06:18:18 AM
I also think it's due to the FBI sale. China news affects the market very little lately. I think we could have more dramatic drops before the 27th

Steve


Title: Re: Bad news from China causing panic sell again?
Post by: BTCfan1 on June 13, 2014, 07:18:00 AM
this is also happening:

http://en.wikipedia.org/wiki/Occupy_Central_(2014) (http://en.wikipedia.org/wiki/Occupy_Central_(2014))


Title: Re: Bad news from China causing panic sell again?
Post by: ElectricMucus on June 13, 2014, 12:13:01 PM
There's another theory floating around suggesting the price crash is intentional by True BelieBTCers to force the FBI to receive less money for the coins. I'm not sure if the theory's serious or not -- Kashmir floated it in her Forbes article on the DPR coins.
|
v  this


Title: Re: Bad news from China causing panic sell again?
Post by: Torque on June 13, 2014, 01:32:39 PM
It was pretty clear yesterday that the elite FUDsters decided to coordinate their media FUD campaign in 5 different areas simultaneously:

U.S.-based FUD:  The Forbes article of the FBI auction of Silk Road coins, spread fear of coins getting dumped on the exchanges

Bitcoin-based FUD:  Spread renewed fears of a 51% attack by GHash.IO

China-based FUD:  The Caixin bitcoin article re-asserting China bank ban fears

Stamp-based FUD:  Spread rumors of lagging transactions and widening price spread (possible problems with Stamp?), rumors of whales moving away from Stamp to other exchanges

Bitfinex-based FUD:  Spread fears of over-leveraged longs being squeezed

Don't you guys see what's really happening?  There's just no way all of these things would naturally come out simultaneously on the exact same day.  The only way is if it is a coordinated FUD campaign designed by the troll whale traders (who have multiple accounts on different exchanges).  They needed FUD to happen on all the major exchanges simultaneously to have the greatest impact on the panic selling.  And it worked beautifully.  The pigs and sheep got confused by all the possible reasons, thought they were legit, and said "I'm not sure what, but something bad's happening! F it! It's going down, I gotta SELL!!"

People need to wake the F up and realize just how much they are being played.


Title: Re: Bad news from China causing panic sell again?
Post by: spazzdla on June 13, 2014, 02:16:09 PM
No one cares about China any more.. it was the FED news..


Title: Re: Bad news from China causing panic sell again?
Post by: Sawadekub on June 13, 2014, 02:18:36 PM
agreed. lolz.. thanks to those scrub nubs that sold their cheap coins.. i manage to scoop a few =) hahaha buy 650 sell <600 thanks GUYS!!


Title: Re: Bad news from China causing panic sell again?
Post by: Torque on June 13, 2014, 02:18:51 PM
No one outside of China cares about China any more.. it was the FED news..
FTFY


Title: Re: Bad news from China causing panic sell again?
Post by: Corenin on June 13, 2014, 02:22:22 PM
Not china news for sure, huobi price is highest now.


Title: Re: Bad news from China causing panic sell again?
Post by: Gianluca95 on June 13, 2014, 06:26:59 PM
Nono, is not the bad news from China.

Sell again is caused by the news of U.S. Government which wants to sell 30.000 BTC with an auction !


Title: Re: Bad news from China causing panic sell again?
Post by: Mythul on June 14, 2014, 06:51:13 AM
Nope, the China dragon is silent....for now, until the 6th or 7th China ban begins.


Title: Re: Bad news from China causing panic sell again?
Post by: zeroday on June 14, 2014, 08:09:05 AM
I've just added China to my ignore list :)


Title: Re: Bad news from China causing panic sell again?
Post by: Tzupy on June 14, 2014, 08:54:33 AM
It was pretty clear yesterday that the elite FUDsters decided to coordinate their media FUD campaign in 5 different areas simultaneously:

U.S.-based FUD:  The Forbes article of the FBI auction of Silk Road coins, spread fear of coins getting dumped on the exchanges

Bitcoin-based FUD:  Spread renewed fears of a 51% attack by GHash.IO

China-based FUD:  The Caixin bitcoin article re-asserting China bank ban fears

Stamp-based FUD:  Spread rumors of lagging transactions and widening price spread (possible problems with Stamp?), rumors of whales moving away from Stamp to other exchanges

Bitfinex-based FUD:  Spread fears of over-leveraged longs being squeezed

Don't you guys see what's really happening?  There's just no way all of these things would naturally come out simultaneously on the exact same day.  The only way is if it is a coordinated FUD campaign designed by the troll whale traders (who have multiple accounts on different exchanges).  They needed FUD to happen on all the major exchanges simultaneously to have the greatest impact on the panic selling.  And it worked beautifully.  The pigs and sheep got confused by all the possible reasons, thought they were legit, and said "I'm not sure what, but something bad's happening! F it! It's going down, I gotta SELL!!"

People need to wake the F up and realize just how much they are being played.


When the market is moved by the FUD, what are you going to do? Try to fight the market? Even if you are a whale, you will lose.


Title: Re: Bad news from China causing panic sell again?
Post by: MatTheCat on June 14, 2014, 11:37:45 AM
When the market is moved by the FUD, what are you going to do? Try to fight the market? Even if you are a whale, you will lose.

The market wouldn't be so sensitive to 'FUD', if it were not already wildly over extended and speculative.


Title: Re: Bad news from China causing panic sell again?
Post by: Tzupy on June 14, 2014, 12:11:34 PM
Correct. Mat, you used to trade on BFX, can you explain under what conditions the leveraged longs would be liquidated?
I believe those are responsible for most of the pump from 450$ to 680$.


Title: Re: Bad news from China causing panic sell again?
Post by: MatTheCat on June 14, 2014, 01:34:36 PM
Correct. Mat, you used to trade on BFX, can you explain under what conditions the leveraged longs would be liquidated?
I believe those are responsible for most of the pump from 450$ to 680$.

A rhetorical question I presume? But ok.

Those leveraged longs would be liquidated at either:

a. The Point where the traders got cold feet and were racing to preserve profits and/or minimise losses.

b. The Point where Bitcoin dives so far that their positions are force liquidated resulting in the entire capital in their trading accounts being wiped out.

If any trader for example went leveraged long at $650+, taking out 2.5 leverage ratio with the entirety of the USD in his trading account, then he would be staring down the barrel of total liquidation of his position right about now, another $30 drop or so might do it, unless he recapitalised his account. If however there are a whole bunch of leveraged Bitfinex traders holding out on crashing long positions and cushioning them with further capitalisation of their trading accounts, and they do indeed manage to ride out the storm, then we could expect a shit ton of selling pressure on the way back up. If it transpires that this mad break out was sponsored largely by leveraged trading, then we are likely still in an Elliott Wave B of a Wave [4] correction, as opposed to in the midst of a new impulse wave. If this were to be the case, then further upside from here will be limited. Indeed, Bitcoin hitting $750 would be an absolute text book 50% counter trend rally top, for the correction from $1160 to $340.

Also worthy of note, is that the Selling pressure has all come from Stamp for this leg down with other exchanges kind of following into line behind them. Stamp doesn't do leveraged trading, all the other large exchanges do. It seems almost like Stamp knows that the market is balanced right up high on leveraged stilts at the moment.


Title: Re: Bad news from China causing panic sell again?
Post by: Tzupy on June 14, 2014, 01:44:39 PM
No rhetorical question, I just don't use BFX and leverage trading, so I wasn't sure. Thanks for explaining how it would work.


Title: Re: Bad news from China causing panic sell again?
Post by: zimmah on June 14, 2014, 01:45:27 PM
Found an interesting post on one blog:

Quote
As Caixin, media group providing financial and business news, reports, The People’s Bank of China issued a document on further consecutive prevention of risks associated with Bitcoin.
Chinese authorities’ regulation of Bitcoin has been strengthened on 3d of December, 2013, when The People’s Bank of China and five associated ministries issued “Prevention of Risks Associated with Bitcoin”.
It was required that financial and payment institutions hadn’t to use Bitcoin pricing for products or services, hadn’t to buy or sell Bitcoins, hadn’t to act as a central counterparty in Bitcoin trading, hadn’t to offer insurance products associated with Bitcoin, hadn’t to provide direct or indirect Bitcoin-related services to customers, including: registering, trading, settling, clearing or other services; accepting Bitcoin or use of Bitcoin as a clearing tool; trading Bitcoin with CNY or foreign currencies; storing, issuing Bitcoin-related financial products; and using Bitcoin as a means of investment for trusts and funds.
In March The People’s Bank of China issued “Circular on Further Strengthening Bitcoin risk prevention work”, the document required banks and third-party payment agencies to close all trading accounts within the territory of more than a dozen Bitcoin platform.
In mid-May there were already 13 banks (including five state-owned commercial banks and joint-stock commercial banks mostly) and partial payment institutions announced that hadn’t longer bitcoin trading accounts.
Currently 15 bitcoin exchanges of China were reviewed to exclude the possibility of access to the network. Among them such large-volume exchanges as BTC China and OKCoin. As soon as this news came, rumors of the possible closure of all Chinese Bitcoin exchanges spreaded immediately, and Bitcoin prices fell more than 10%. Likely with the beginning of a new day this tendency will increase.

Original post in english found here: http://ecurrency.ec/2014/06/%D1%80%D1%83%D1%81%D1%81%D0%BA%D0%B8%D0%B9-%D0%B4%D0%B5%D1%8F%D1%82%D0%B5%D0%BB%D1%8C%D0%BD%D0%BE%D1%81%D1%82%D1%8C-15-%D0%BA%D0%B8%D1%82%D0%B0%D0%B9%D1%81%D0%BA%D0%B8%D1%85-bitcoin-%D0%B1%D0%B8/

That blog also has a link to original post from Chinese website. Seems legit to me, but the strange thing is that CoinDesc and other major blogs know nothing about it.

I bet here are many traders from China, what's happening there? Any proof or rebuttal from CEOs of local exchanges maybe?

Where have you been? Price falling is because FBI will sell Silk Road btc by the end of June.

that doesn't make any sense, that would be like saying the price is dropping because they are anticipating a price drop due to FBI selling coins.

I think it's partly because of the 51% FUD from GHASH and also because we have been rising in price pretty fast the past weeks.


Title: Re: Bad news from China causing panic sell again?
Post by: CounterStrike on June 14, 2014, 01:54:49 PM
China fuel the panic sell.


Title: Re: Bad news from China causing panic sell again?
Post by: MatTheCat on June 14, 2014, 02:02:24 PM
No rhetorical question, I just don't use BFX and leverage trading, so I wasn't sure. Thanks for explaining how it would work.

Yeah....but you are aware that with any kind of leveraged trading, the trader doesn't actually own anything and has taken on debt to either sell or purchase an asset. Two essential features of leveraged trading are therefore the fact that the leveraged position is generally a temporary one whereby the trader seeks to quickly profit from market momentum, and also that in a leveraged trade, the trader risks losing everything he has in his trading account.

In the case of a long position for example, If Bitcoin were $500, and I bought 10 BTC with $5K, then I would own 10 BTC. If Bitcoin went down to $300, I would still own 10 BTC.

If on the otherhand I opted to leverage my position and I used my $5K to buy 30 BTC, then I would not own 30 BTC. I would owe the exchange $10K and would be paying a fairly usurious interest rate on that loan and I would be hoping to repay the debt with the procedes of selling that 30 BTC back into market for higher price than I paid, which means I keep the profit margins for myself. If however the market never went my way, and Bitcoin dropped down to $350, then the exchange would force sell my Bitcoins onto the market in order to insure that I had the funds to repay my debt. Thus I would lose 100% of my capital unless I funded my trading account with further USD and I would not own any Bitcoins. I would be totally wiped out.

If this rise has indeed been based largely on leverage, then that is very very bad. It means we are essentially still in a bear market and this was an over exuberant counter trend rally. Worryingly enough, I notice that the the rate of USD swaps on Bitfinex is still at ATH, despite the strong retrace. Having said that, there is no means of measuring the quantity of that leverage that is actually actively being used in leveraged long positions.......but then if it isn't being used, why would anyone take it and sit paying high daily interest rates on it?


Title: Re: Bad news from China causing panic sell again?
Post by: Tzupy on June 14, 2014, 02:12:28 PM
I am aware that with leveraged trading one risks losing 100% of the trading funds if things go really wrong.
That's why I don't do it (yet), I'd have to be 99% sure of a market move. Maybe in the future, with a limited % of my trading funds.
I'm not saying all the last month's uptrend was just leveraged pump, but that it was amplified above 600$ into overbought territory.
And if this correction drops below 500$, it might mean that many BFX traders will lose a lot (because of leverage).


Title: Re: Bad news from China causing panic sell again?
Post by: MatTheCat on June 14, 2014, 03:21:27 PM
I am aware that with leveraged trading one risks losing 100% of the trading funds if things go really wrong.
That's why I don't do it (yet), I'd have to be 99% sure of a market move. Maybe in the future, with a limited % of my trading funds.
I'm not saying all the last month's uptrend was just leveraged pump, but that it was amplified above 600$ into overbought territory.
And if this correction drops below 500$, it might mean that many BFX traders will lose a lot (because of leverage).

I sit here, and most of the time, I 'kind of' know which way the market is heading. That is sitting here looking only to take a good old fashioned leveraged long position, and knowing when the market might go in my favour or go against me. Therefore I might be able to justify the bright idea to myself, of going over to Bitfinex for a bit of leveraged trading. For example, I have been near term bearish since $645, when I took a loss on a long position because I believed that the market was going down. I had buy-ins triggered between $560 - $600, a position which I folded last night at $590 ($589.98 to be precise). So on the face of things, I have called the market pretty well and I could have made absolutely blistering profits if only I had made my way over to Bitfinex and shorted back when I exited my long position (BTX was still $660 back then). However, as soon as I start playing with leverage, funny things start happening in my head. I learned this lesson the hard way. I wouldn't be surprised if I was sitting on a net loss right now, had I chose to get some funds over to BFX in order for a bit of leveraged trading, even though my finger has been pretty close to pulse of the market the whole time.

Anyhow..looks like we have near parity again between Stamp and BFX. Looks like a lot of leveraged longs are folding their hands at last. Big selling volume on BFX, but not very much on Stamp.



Title: Re: Bad news from China causing panic sell again?
Post by: Tzupy on June 14, 2014, 03:36:51 PM
Yeah, when the risks are too high (with leveraged I mean) I supposed it's difficult not to become emotional, and then make mistakes.

Currently China is leading the downward movement. But on BFX the ratio asks / bids has dropped to about 300$ / coin.  ;D


Title: Re: Bad news from China causing panic sell again?
Post by: MatTheCat on June 14, 2014, 03:49:45 PM
Yeah, when the risks are too high (with leveraged I mean) I supposed it's difficult not to become emotional, and then make mistakes.

Currently China is leading the downward movement. But on BFX the ratio asks / bids has dropped to about 300$ / coin.  ;D

China?

Really?

Not on the charts I am looking at.

This was Bitfinex.


Title: Re: Bad news from China causing panic sell again?
Post by: Tzupy on June 14, 2014, 04:20:29 PM
China didn't drop so much yesterday, so today they were catching up, which resulted in a more bearish look.

But what's happening on BFX is getting a bit scary. Even if we are still in wave C, this shouldn't have been a major drop.
I suppose BFX going down hard will also somewhat drag Bitstamp down too.


Title: Re: Bad news from China causing panic sell again?
Post by: MatTheCat on June 14, 2014, 04:41:36 PM
China didn't drop so much yesterday, so today they were catching up, which resulted in a more bearish look.

But what's happening on BFX is getting a bit scary. Even if we are still in wave C, this shouldn't have been a major drop.
I suppose BFX going down hard will also somewhat drag Bitstamp down too.

That will be the long squeeze that has been getting talked about for the past week or two, only for the usual bulltards to pop up and tell us all how the maxed out swaps on Bitfinex are actually bullish.

On Stamp, which is my chart of reference for analysing Bitcoin, we have just tested the long term support line. This is the support line that was tested back just a couple of days before the break out on May 20th. It was tested on the $340 crash. Tested on the October Silk Road Crash, and dates back to where Bitcoin was trending in Jan 2013. If Bitcoin is to rebound and head for the sky, then this is surely the bottom. If however that trendline fails to hold.....then Bitcoin is going down very hard.


Title: Re: Bad news from China causing panic sell again?
Post by: segeln on June 14, 2014, 05:37:13 PM

On Stamp, which is my chart of reference for analysing Bitcoin, we have just tested the long term support line. This is the support line that was tested back just a couple of days before the break out on May 20th. It was tested on the $340 crash. Tested on the October Silk Road Crash, and dates back to where Bitcoin was trending in Jan 2013. If Bitcoin is to rebound and head for the sky, then this is surely the bottom. If however that trendline fails to hold.....then Bitcoin is going down very hard.
go on and start learning to draw trendlines.The 2013 (secondary to the Primary 2011 one)Trendline was already broken in April2014


Title: Re: Bad news from China causing panic sell again?
Post by: Arghhh on June 14, 2014, 05:54:04 PM
At this point, I would take ten China bans over the 51% damage miners have inflicted upon themselves.


Title: Re: Bad news from China causing panic sell again?
Post by: johnwest on June 14, 2014, 06:23:52 PM
I've just added China to my ignore list :)

Bitcoins Communites do not lke China.