Bitcoin in RALLY mode

[kiba]

It seem that a very large resistance at .85 is cleared. 10,900 BTC are sold. The road seem to be open to 1.00 BTC parity.

However, it seem that we could fall downhill quite easily.

[kiba]

I would really like to know the reasoning behind such a huge jump from .45 to .85.

Could be anything as far as I know.

[JohnDoe]

I would really like to know the reasoning behind such a huge jump from .45 to .85.

Could be anything as far as I know.

It looks to me that the jumps were made by just one or a few (wealthy?) people buying everything they could from mtgox in a short amount of time. Rather than going quickly back to "normal" levels, the price has stayed high because there is a strong psychological desire from the community to reach parity. I think it will get to parity pretty soon and stall there or a little above for some time until new merchants arrive to sustain the bigger economy.

[kiba]

Support level is now at .82 USD with 10155 BTC.

[kiba]

How about "We don't know shit what cause the price of bitcoin to rise"?

Frankly, everybody have their own opinion as to why the price of bitcoin rise.

[ribuck]

If we could properly understand why the market settled on a particular price, then we would have enough knowledge that centrally planned economies would be successful. The 20th century answered that question dramatically.

A market aggregates the desires and value judgements of everyone who participates in the market. Unless you fully know all of those, you can't know why the market price is what it is.

So just decide what a bitcoin is worth to you, and buy or sell accordingly.

[bitdragon]

Come on, people. It's called price discovery and we are not better here than all those talking heads on CNBC i.e. none of us has a clue. The deity called marked has decided that at this particular moment in time BTC worth so many dollars pounds yuans rubles and tugricks. Deal with that.

Why the hell anyone would expect bitcoins to stay at low ex to inflationary currencies while it is more and more difficult to mint new coins is beyond me. Wait until BTC worth 10$ soon, we are just a few QE's away from it. I personally waiting for parity with £ soon.

amen

[JohnDoe]

Doesn't make sense to me that wealthy people would be buying up and driving up B, just because the community desires that. Right now, it really does look like a great speculative investment, and new buyers are arriving in the market...

I didn't say wealthy people are buying because the community desires it? I'm just saying that those big jumps in value in a matter of minutes were created by single actors.

Also why do you say it doesn't look like a good investment? People who bought bitcoins at the start of this thread have had over 1000% return on investment. I'm think most would agree that bitcoin growth will be outpacing any other commodity/currency for a long time.

Plus, the B community is relatively more diverse than that of almost any other currency. So, i doubt they are psychologically oriented specifically toward USD parity.

It's an important milestone. However, imho, B is going to continue chasing down other currencies to parity - the euro, the pound, the dinar. To me, the holy-grail parity seems to be gAu. Then, B will really be "in business"...

I said there's a strong desire to reach usd parity, not to stay there forever. Yeah, I know we are from all over the world but reaching usd parity is just very news friendly, I'm pretty sure we won't be making any headlines when we reach the kuwaiti dinar. Also it sends the message to people on the fence that "bitcoin is serious business".

[RHorning]

Doesn't make sense to me that wealthy people would be buying up and driving up B, just because the community desires that. Right now, it really does look like a great speculative investment, and new buyers are arriving in the market...

I didn't say wealthy people are buying because the community desires it? I'm just saying that those big jumps in value in a matter of minutes were created by single actors.

Also why do you say it doesn't look like a good investment? People who bought bitcoins at the start of this thread have had over 1000% return on investment. I'm think most would agree that bitcoin growth will be outpacing any other commodity/currency for a long time.

While the big jumps were by single actors, I would argue that doesn't tell the whole story.  Mt. Gox does represent the bulk of the community and it has been impressive in terms of how many people are participating.  Generally I've been watching how many users are involved, and it typically has been about 50-80 people with orders on the market at any given time (the operator of Mt. Gox could give a definitive response for the exact number).  There are also other "lurkers" like myself who stay out of the market at the moment.

What is interesting is that I've been spending most of my time also watching the Ruble market on btcex.com, where actions on Mt. Gox are typically reflected on those markets too.  Sometimes there is a bit of a lag, such as how the WMZ market is a bit below the Mt. Gox price, but I wouldn't bet on it staying that way for too long.  Hint:  If you can change Liberty Reserve for Web Money, now would be a good time to do just that and get some Bitcoins for cheap from that particular market.

The Ruble has long ago passed parity, but the current exchange rate is roughly settled down at what Mt. Gox has if you converted Dollars to Rubles on the ForEx market.  While it doesn't have the volume of Mt. Gox, I would say that this is a good indicator of what other traders elsewhere think of the value of Bitcoins.

The value of a Bitcoin is going up because those with Bitcoins don't want to sell them for cheap.  It is certainly a genuine auction market where the supply of Bitcoins is limited, but the supply of other currencies is plentiful.  If there were piles of Bitcoins burning holes in people's pockets, they would be put onto the market at this time.  Anybody who has either purchased or mined a Bitcoin could at any time put in a bid for a lower amount.  The real issue is why that isn't happening, thus pushing the market up.  Those who purchased Bitcoins for smaller values in the past certainly could use this opportunity for some "profit taking" into Dollars/FRNs.

[abstraction]

I said there's a strong desire to reach usd parity, not to stay there forever. Yeah, I know we are from all over the world but reaching usd parity is just very news friendly, I'm pretty sure we won't be making any headlines when we reach the kuwaiti dinar. Also it sends the message to people on the fence that "bitcoin is serious business".

It would be cool to see a page with the world's major currencies (20 or so?) ranked against bitcoins. Most currencies will need to first convert to USD or EUR, and then convert to bitcoin. This would easily generate small and frequent news events internationally as it reaches parity with each currency one by one up the list.

If someone makes a functioning web site with this and posts the link to it on youtipit, I'll donate bitcoins. I'll tip 20 bitcoins to the first working implementation I see, another 10 to the second working implementation, and 5 bitcoins to the third working implementation.

[dingus]

I said there's a strong desire to reach usd parity, not to stay there forever. Yeah, I know we are from all over the world but reaching usd parity is just very news friendly, I'm pretty sure we won't be making any headlines when we reach the kuwaiti dinar. Also it sends the message to people on the fence that "bitcoin is serious business".

It would be cool to see a page with the world's major currencies (20 or so?) ranked against bitcoins. Most currencies will need to first convert to USD or EUR, and then convert to bitcoin. This would easily generate small and frequent news events internationally as it reaches parity with each currency one by one up the list.

If someone makes a functioning web site with this and posts the link to it on youtipit, I'll donate bitcoins. I'll tip 20 bitcoins to the first working implementation I see, another 10 to the second working implementation, and 5 bitcoins to the third working implementation.

Are you talking about this?: http://bitcoincharts.com/markets/

17EHUui9LnEc4QJ1fnh7bhP1gfRor43knS

[kiba]

Are you talking about this?: http://bitcoincharts.com/markets/

It only track currencies that are being traded for bitcoin.

[abstraction]

Like this http://www.x-rates.com/cgi-bin/cgicalc.cgi?value=1&base=USD, but denominated in BTC. The currencies not listed on "bitcoin charts" would need to be translated to the cheapest currency option available on "bitcoin charts".

[S3052]

Interesting link.

The Kuwaiti Dinar is the (nominally) strongest currency globally. This should be the goal for BTC to overcome (Kuwaiti Dinar is currently at 3.59 USD).

[markm]

That is interesting because I think it was dinars that were being offered by the ponzi/gold game folk a few years back as the latest greatest ponzi to invest in. Hmm. Maybe that was some other nation's dinars or is that the only nation who calls their money dinars?

-MarkM- (Or am I thinking of something other than dinars entirely, some other money from out east somewhere?)

[S3052]

That is interesting because I think it was dinars that were being offered by the ponzi/gold game folk a few years back as the latest greatest ponzi to invest in. Hmm. Maybe that was some other nation's dinars or is that the only nation who calls their money dinars?

-MarkM- (Or am I thinking of something other than dinars entirely, some other money from out east somewhere?)

Interesting, I am not aware of this Ponzi thing about Dinars. Based on Wikipedia, here are all the Dinar currencies:


 Algeria     Algerian dinar    DZD
 Bahrain    Bahraini dinar           BHD
 Iraq              Iraqi dinar              IQD
 Jordan    Jordanian dinar       JOD
 Kuwait    Kuwaiti dinar           KWD
 Libya              Libyan dinar             LYD
 Rep. of Macedonia    Macedonian denar    MKD
 Serbia    Serbian dinar            RSD
 Tunisia    Tunisian dinar            TND

[markm]

Aha, Iraq does use them. Cool, I thought I was more likely to confuse Iran and Iraq than either with Kuwait.

I think the goldgame folk were pushing Iraqi dinar when they were dirt cheap or maybe even newly invented
(if newly then maybe almost before they were really or much "out there" / "in use").

-MarkM-

[S3052]

As you can read in my latest Technical Analysis, the BTC/USD may have started again (bottoming around 0.71 over the past days).

http://www.forexfactory.com/showthread.php?p=4487523#post4487523

[S3052]

The Rally is underway.

See post here:

http://bitcointalk.org/index.php?topic=1493.260

[jimbobway]