[Apr 30, 2013] Reason for the dump that started today's 10$+ drop?

[MOB]

Perhaps the fool who spent $75,300 on breaking down the 145 wall yesterday evening decided to cut his losses and get out.

What did this person do and how do you know about it?  Genuine question - I'm new to trading.

I was watching the tickers at clark moody and bitcoinity when it happened.  In the span of about 4 seconds the entire sell wall at 145 (not 144.999 or 145.0001) disintegrated.  The exactness of it seemed to indicate it was almost entirely one buyer placing a large buy order at 145 precisely for some ~520 coins.

It could be coincidence or something else, but it was unusual behavior in my eyes.  Panic buying does not start or stop so precisely.

[BitcoinAshley]

I don't understand... the price action today is pretty much the same as it was yesterday, and the day before. Up $5, down $10, up $15, down 7, up 2, up 4, down 10, up 5,

Nothing significant occurred.

Someone explain to me why this thread exists?

Why don't we make a thread like this every time there is a $10 decline in price or a $5 rally, and try to figure out why it happened? Oh right, because it happens every single fucking day. We have a thread for that, it's called "Wall Observer Thread," Mr. "I'm so experienced, I've been mining since 2011"

[smoothie]

I assume someone had a sudden need for ~800k in national currency.

"but the price touched the bottom of the screen so it is a dump right?"

It was a dump because there was a sudden spike in volume combined with a sudden drop in price. The most obvious explanation for that is someone market-selling a large number of coins. Of course, it's not necessarily important in the big picture - not every "dump" actually matters. But what would you call a volatility spike combined with a price drop?

If that is the logic you are going to use then a price change of $0.01 would be a "dump" right?

Zoom into 1 minute chart....sell of 0.02 bitcoins....AHHH the price is crashing!

[meangreen]

1. BitPay (or another subject with loads of coins to burn) shorting at the end of the month in order to buy in cheaper
2. 1st of May is labour day, banks are closed in many countries, people dumping because they expect a mini-weekend-dip-alike
3. Most "get rich quick" people are leaving the building after having gotten hurt by buying at 200+$
4. Bitcoin isn't the new cool thing anymore. Google Trends is in decline. Bitcoin got its 5 minutes of celebrity and now it's back to being play-money (notice how low the volume is if compared to March)
5. Others? Write your own or let me know if you agree with any of the above...

(disclaimer: I am long bitcoin and yes I hope they'll skyrocket but still I try to stay objective as opposed to delusional bull)

good post. i agree with them all.

[meangreen]

there is no place of significance that you can short. gox doesn't follow other exchanges. the other exchanges follow gox.

the price ran up $10 yesterday. today its down $10 and back where it started

this is a non-event. stop wasting everyones time just cause you bought higher yesterday and now are scared

lol

[redwraith]

I blame the troll box on BCT-e.  It's full of kiddies who call CRASH! when it moves a buck or two up or down.  I think Bitcoin has brought in a lot of people who don't know shit about how markets move, whether it's silver, gold, stocks, soybeans or pork bellies, they all do the same thing: move up and down!  Granted the volitility of bitcoin is quite extreme compared to anything else, but this should just tell you that a $10 dollar move is NOTHING.

[SlipperySlope]

Bitcoin isn't the new cool thing anymore.

Not exactly what caused today's slump, but the change of sentiment that accompanied the collapse of the bubble at $266 is now sort of a depressing weight pulling prices down.

[johnblaze]

wait a second everyone

have you forgotten that the OP has been mining since 2011?