Let's say that you're a company that wants to buy 30k bitcoins. As you know, if you start buying bitcoins, then you are creating demand and as you buy bitcoins, the price of bitcoins increase. This is because more people are offering to sell them at higher prices (so they can profit from the sale).

Let's say that bitcoins cost $600. At $600 there are 0 people selling, at $610 there at 10 people selling, at $620 there are 100 people selling and I assume you got the pattern (the graph below is the actual current version of this from bitcoinity). Instead of buying bitcoins and watching the price fluctuate in response to a 30k buy, these large companies are better off paying a flat rate premium to acquire all those bitcoins without influencing the market too much or overpaying (because by the time they get to their last bitcoin, it would cost a fortune).



Also, if you've noticed the logarithmic curve flattening out, I would like to remind you that that means for every new bitcoin, the price will increase a lot more than in the beginning of the graph, but if there is some meteoric rise then there will be more people willing to sell which would correct the flattening out.

It just dropped from 605 to 595. 420 Bail it out.



</sarcasm>

Why look at the weekly MACD specifically? If you look at other time periods, it seems to be at varying points of the sine curve, (3d).

/thread

This is a nice little dip we're having. How low can it go.

I agree. There hasn't been any action in the past few days. Hopefully the leak was right about tomorrow.