With so many people short we could be back up above that in no time. There is no shorting on bitcoinica which usually causes a rally. A rally coupled with those who leveraged new shorts will give us the fuel to go above $8 even. Since this selloff was vicious you can be the next rise will be just as if not more vicious.

If there is no shorting then I expect another rally very shortly and we could even break the $8 barrier in a matter of minutes like we broke $5 on the way down. I have noticed the pattern when bitcoinica will not let people open a position in one direction, the market moves in the other. This is why I suspect Zhoutong may not be completely honest and why I don't know anyone would trade on margin there.

I didn't lose anything since I wasn't leveraged but several buy orders were executed for me on the way down so my cash is down but bitcoins are up. What we need now is another spike up to punish those who shorted and caused this drop.

With the big drop we just had I think my question is more relevant than ever.

This still could very well have been Zhoutong himself. I don't agree with doing anything leveraged, especially when there the books where it is being done are closed except to one person. I think people have way too much trust in a 17 year old.

Well then it worked incorrectly when i tried it with the $0.70 worth of codes Zhoutong gave the other day. I tried both short and long and this is exactly how it worked when I did it (profit/loss multiplied by leverage)

Look at the order its 17k BTC. Unless I am understanding it incorrectly bitcoinica only operates in BTC so that 17k is that. When you go to close your position the the profit or loss on the right is multiplied by your leverage. He is leeching because he is just doing this to make money (steal money from bitcoin users). I would disagree however if he took this money and reinvested as bitcoin but something tells me that this user is not that type of a person.

Shorting 17K bitcoins at 10:1 caused a massive dump of coins on the market (170k) which would fully explain the crash we just experienced happened.

I hope someone takes this asshole out by buying and liquidating his position.

At first I was thinking this was Zhoutong himself but from this users post it appears to be them.

So you are in large part to blame for the crash. 17k bitcoin leveraged 10:1 = 170k on the market = crash

Your a leech on the bitcoin economy and I hope you get liquidated.

Maybe this has to do with the drop in price. Maybe MTGox isnt executing new buy orders only sell.

Come on people! We need more doom and gloom threads for the price to go up!

The sky is falling! Bitcoins are falling! The world is over!

(now rise my Bitcoin!)

That's assuming it wouldn't stabilize around 10. It very well could as the increasing price would bring more confidence to the market and in turn support. Imagine someone who sold at 10 and say it goes to 12. That person who sold at 10 will say if it can hit 12 I need to buy back in close to 10 (if it hits there). This is how resistance turns into support and I have seen it happen a number of times including in my own trading ($3-$5 range)

I see from the post it was you who made it.

Who went on there as Mr Bitcoin and told them it was real? Maybe you should have added that the show said they are worth $3 which they were a few weeks back but its back up to 7ish.

Yet many cared enough to google it apparently and one vendor signed up for bitpay within 23 minutes.

More importantly when these red flag event occur then the market always seems to move in the opposite position (cant short = market goes up, cant go long = market decrease). Is Zhou trading against these flags and if he says no why should we believe him? He would definitely have the capital and the means to do so with bitcoinica.

Its in their best interest to accept bitcoins. If they accept directly and another site I have to go about it in a roundabout way (ie Gift Cards) then I would definitely be picking amazon over the competition. My next purchase will be a second 6950 so this is $250 or so in sales they can take or lose.

I would have to agree. It would appear the USA is taking a page out of China's playbook for controlling the internet. I wouldn't be surprised if our government up north in Canada has already done this seeing as they are so regressive.

I think a good question and point of topic for the show would be:

How can we trust him to not trade against the positions of the members on site?

I have noticed every time they have run out of reserves of either USD or BTC that the market tends to move significantly in the opposite direction shortly after. Being able to know such a large number of orders that can't be seen on MTGox and no one else is privy to is bound to be tempting to exploit for profit. I am also sure that he has a large number of bitcoins and dollars from commissions. He has all the means at his disposal to perform such an act and it would be almost impossible to trace.

I thought Ive seen it at 7.19.

Is bitcoinica the cause of the current push down?