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I'm not trolling, and the bubble comment was tongue in cheek. I actually have no intention to buy BTC, and only casually mine them. My day job however is that of a Forex intraday trader, so I find the bitcoin economy interesting and I've been following along with it pretty closely. As I said in my second post, I don't think the value will drop to nothing, and I know this is just a correction that will reverse if people actually start using bitcoins instead of simply speculating on them. I made this thread to warn people of the retrace and possibly help people realize that it was a good idea to sell *some* of their bitcoins at that time to recoup their initial mining setup costs. I'm sure the people who took my advice 12 hours ago are glad they did. I do not however think people should sell off all their bitcoins since we'll see a slow and steady rise back up as coins are actually put to use (when The Silk Road reopens its doors, most likely )

I just looked at Bitcoin Monitor, which shows all the different activity on the Bitcoin network, and it shows that the amount of trading is continuing to ramp up, while Mt Gox shows that those trades are sales whose ask price is decreasing further and further as people trying to sell are lowering their ask in order to get them sold first before price drops more. Price has already dipped below $20.

With selling building up by the minute (literally), I'm willing to bet the price will drop all the way to $10.
We may have just seen the shortest economic bubble of all time

Price has dropped ~$5 since I posted this 9 hours ago. It held pretty well at the $25 mark, but just fell through to $24 and I say it will fall all the way to $20 at least, in the next few hours.

Right, speculators are either going to buy (or hold on to their) coins if the price breaks through and holds above 30 because that means price is going to use the old point of resistance ($30) as a point of support and climb to the next level of resistance, which will presumably be $35 or $40. Then that cycle repeats until the price bounces off a point of resistance and retraces in a downward direction.

Rereading, that seemed a bit bleak. I don't mean to infer that the sky is falling and the value is going to drop to nothing, simply that a pretty significant retracement in value is about to occur.

Looking at Mt. Gox's megachart just now, I saw that price is currently stagnant at just below the thirty dollar mark. Price slows down, it happens all the time, right? Well, the more important factor is the volume of trades occurring. If you look at trade volume on the chart you'll notice it's very low, which means the buyers stopped buying until the price moves over 30 dollars (round numbers tend to cause this type of resistance). The problem is with nobody buying, the value won't go over 30 since the rise in value was caused by speculators buying into the currency. Also, if the price sits too long right below a point of resistance, those speculators will take it as a signal to sell, effectively pulling the value down. If you were waiting to sell enough bitcoins to recoup your startup costs for gear, now would be the time to do it.