What is going on, who is selling at these prices?

[FaucetRank.com]

The incident that has triggered the panic selling started at China when the central bank of China made an announcement to bitcoin holders in China to be careful in investing in bitcoin due to its volatile nature. Though the announcement was simple but the impact was great, Chines bitcoin holders who are newbie to the business sold their bitcoins that has instantly put down the price of bitcoin from 1000$ down to 900$. That event was not the end after that drop in price bitcoin holders around the world panicked and also sold their bitcoins and that has turned bitcoins price down to 700$

It was just a matter of time

As you correctly noted, a small announcement triggered an avalanche of panic sell-offs. But if it hadn't been this announcement, there would have been another such triggering event setting massive correction. Simply because most people felt that they price was rising too fast and that wouldn't last for long. In a sense, the correction (or dump) had already been scheduled

Yes you are right I think Bitcoin holders were ready for a dump so the price is continuously falling from ATH but the price will not fall less than $600 and and after few months Bitcoin will start to raise again in the sky and each time Bitcoin raise in the sky it goes to new height than  previous ATH so hold your horses and keep your Bitcoin hand because in long run there will be profit only.

[Decoded]

I guess they are the ones who are impatient. maybe they want to make bitcoin prices down, so they can buy bitcoin at a bargain price. Well, I was also surprised to see the price of bitcoin down very quickly. I do not think they could sell their bitcoin under $ 800. but, maybe they have a bitcoin very much, and had to sell in large numbers.

Not impatient. Either people extremely smart, or extremely stupid. If I had to take a guess, I would say that more than half would be stupid, and are small-minded lemmings who sell when the price drops.

[deisik]

I guess they are the ones who are impatient. maybe they want to make bitcoin prices down, so they can buy bitcoin at a bargain price. Well, I was also surprised to see the price of bitcoin down very quickly. I do not think they could sell their bitcoin under $ 800. but, maybe they have a bitcoin very much, and had to sell in large numbers.

Not impatient. Either people extremely smart, or extremely stupid. If I had to take a guess, I would say that more than half would be stupid, and are small-minded lemmings who sell when the price drops

I wouldn't call these people stupid

Most wannabe traders are not stupid, they are simply extremely naive in this field. They may have read it somewhere that most traders and their money are just cannon fodder for market makers, that 90% of traders are losing over long enough time frame, but they either don't take this info seriously as they should or just think themselves smarter than the rest of the pack. Their biggest mistake is that they should be as smart as (or even smarter than) market makers since just being smart or smarter than their fellow traders obviously won't suffice

[antonina2]

The incident that has triggered the panic selling started at China when the central bank of China made an announcement to bitcoin holders in China to be careful in investing in bitcoin due to its volatile nature. Though the announcement was simple but the impact was great, Chines bitcoin holders who are newbie to the business sold their bitcoins that has instantly put down the price of bitcoin from 1000$ down to 900$. That event was not the end after that drop in price bitcoin holders around the world panicked and also sold their bitcoins and that has turned bitcoins price down to 700$

It was just a matter of time

As you correctly noted, a small announcement triggered an avalanche of panic sell-offs. But if it hadn't been this announcement, there would have been another such triggering event setting massive correction. Simply because most people felt that they price was rising too fast and that wouldn't last for long. In a sense, the correction (or dump) had already been scheduled

Yes you are right I think Bitcoin holders were ready for a dump so the price is continuously falling from ATH but the price will not fall less than $600 and and after few months Bitcoin will start to raise again in the sky and each time Bitcoin raise in the sky it goes to new height than  previous ATH so hold your horses and keep your Bitcoin hand because in long run there will be profit only.

Should the DX rally to 106, BTC could easily fall to unter the $600 mark.  It is a very thin trade and therefore prices are subject to extreme movement, that said, it could hit $3K this year as well. To be perfectly honest the Chinese have better ways to get their money out of China than BTC at this point, esp with the new capital controls placed the last year.  One thing that is very important to remember in trading is that nothing is for sure. Always set stops and follow your rules.  I have found this to be relevant in all types of transactions, mostly the hard way.

Prices never move in a straight line, and if people are right and the majority of BTC IS in fact own by the Chinese, all you have to do is look at how their stock market moves and you will understand the exhaustive nature of their trading practices.  When it comes to a rally and a crash, they sure know how to do it right.  Here is the shanghai index, check out copper, hot rolled steel, the HSE, its all there in the charts.

https://pbs.twimg.com/media/C2DIbFKW8AAzWD1.jpg:large  

  

[xuan87]

The one that sell, is the one that afraid of the price will going lower again, and the one that desperately need fiat to fulfill their needs, and specially in this newest case where china being search, is because they need to exchange the coin before the government declare whether bitcoin is going to be banned or not, if bitcoin being banned they will have difficulty to cash out

[deisik]

The incident that has triggered the panic selling started at China when the central bank of China made an announcement to bitcoin holders in China to be careful in investing in bitcoin due to its volatile nature. Though the announcement was simple but the impact was great, Chines bitcoin holders who are newbie to the business sold their bitcoins that has instantly put down the price of bitcoin from 1000$ down to 900$. That event was not the end after that drop in price bitcoin holders around the world panicked and also sold their bitcoins and that has turned bitcoins price down to 700$

It was just a matter of time

As you correctly noted, a small announcement triggered an avalanche of panic sell-offs. But if it hadn't been this announcement, there would have been another such triggering event setting massive correction. Simply because most people felt that they price was rising too fast and that wouldn't last for long. In a sense, the correction (or dump) had already been scheduled

Yes you are right I think Bitcoin holders were ready for a dump so the price is continuously falling from ATH but the price will not fall less than $600 and and after few months Bitcoin will start to raise again in the sky and each time Bitcoin raise in the sky it goes to new height than  previous ATH so hold your horses and keep your Bitcoin hand because in long run there will be profit only.

Should the DX rally to 106, BTC could easily fall to unter the $600 mark. It is a very thin trade and therefore prices are subject to extreme movement, that said, it could hit $3K this year as well. To be perfectly honest the Chinese have better ways to get their money out of China than BTC at this point, esp with the new capital controls placed the last year.  One thing that is very important to remember in trading is that nothing is for sure. Always set stops and follow your rules.  I have found this to be relevant in all types of transactions, mostly the hard way 

I don't think this is very likely

The price of Bitcoin doesn't depend much on the value of the US dollar (I mean beside simply mechanistic correlation). It mostly depends on the price manipulation and that could work either way, i.e. if the manipulators see that they can safely grab traders' money, then the Bitcoin price will rise simultaneously with the dollar (and vice versa). Otherwise, you will have difficulty explaining the recent Bitcoin rally while the USDX had been on the rise too

[antonina2]

The incident that has triggered the panic selling started at China when the central bank of China made an announcement to bitcoin holders in China to be careful in investing in bitcoin due to its volatile nature. Though the announcement was simple but the impact was great, Chines bitcoin holders who are newbie to the business sold their bitcoins that has instantly put down the price of bitcoin from 1000$ down to 900$. That event was not the end after that drop in price bitcoin holders around the world panicked and also sold their bitcoins and that has turned bitcoins price down to 700$

It was just a matter of time

As you correctly noted, a small announcement triggered an avalanche of panic sell-offs. But if it hadn't been this announcement, there would have been another such triggering event setting massive correction. Simply because most people felt that they price was rising too fast and that wouldn't last for long. In a sense, the correction (or dump) had already been scheduled

Yes you are right I think Bitcoin holders were ready for a dump so the price is continuously falling from ATH but the price will not fall less than $600 and and after few months Bitcoin will start to raise again in the sky and each time Bitcoin raise in the sky it goes to new height than  previous ATH so hold your horses and keep your Bitcoin hand because in long run there will be profit only.

Should the DX rally to 106, BTC could easily fall to unter the $600 mark. It is a very thin trade and therefore prices are subject to extreme movement, that said, it could hit $3K this year as well. To be perfectly honest the Chinese have better ways to get their money out of China than BTC at this point, esp with the new capital controls placed the last year.  One thing that is very important to remember in trading is that nothing is for sure. Always set stops and follow your rules.  I have found this to be relevant in all types of transactions, mostly the hard way 

I don't think this is very likely

The price of Bitcoin doesn't depend much on the value of the US dollar (I mean beside simply mechanistic correlation). It mostly depends on the price manipulation and that could work either way, i.e. if the manipulators see that they can safely grab traders' money, then the Bitcoin price will rise simultaneously with the dollar (and vice versa). Otherwise, you will have difficulty explaining the recent Bitcoin rally while the USDX had been on the rise too

Yeah, correlations have been all messed up since the beginning of the year, well, since the election, but really bad since the New Year. The positive oil/USD/ES correlation just broke over the last two days, started on the 3rd when markets opened for the year.  I was not trying to imply that the two were 100% correlated, and I am sorry if that is what you came to believe.  I am not sure what you mean by mechanistic correlation, would that mean current sentiment is fundamentally always right implying efficient market theory?  Anyway, I am not saying that under 600 is def going to happen either, but it is important to keep in mind that it is a possibility.  I totally agree that prices are manipulated (which does not jive with efficient market theory) and that is something that we all have to deal with on a daily basis. As far as the USD I think that it could get much higher before it falls making USD the more sought after currency and credit risk than others during the run.  As far as the big picture is concerned I think that the USD will fall pretty far and given the state of other nations and the fact that it is the world reserve currency I could see BTC going much higher.  Mostly because it is not acknowledged as as much of a risk as say gold by the major parties at the moment.  Thank you for your input! This is a great conversation    

[Taksonas]

I guess they are the ones who are impatient. maybe they want to make bitcoin prices down, so they can buy bitcoin at a bargain price. Well, I was also surprised to see the price of bitcoin down very quickly. I do not think they could sell their bitcoin under $ 800. but, maybe they have a bitcoin very much, and had to sell in large numbers.

Not impatient. Either people extremely smart, or extremely stupid. If I had to take a guess, I would say that more than half would be stupid, and are small-minded lemmings who sell when the price drops.

Indeed not smart at all, they can better wait on a better price that is coming without any doubts, that is also why they are just so stupid, just have patience people.

[deisik]

Should the DX rally to 106, BTC could easily fall to unter the $600 mark. It is a very thin trade and therefore prices are subject to extreme movement, that said, it could hit $3K this year as well. To be perfectly honest the Chinese have better ways to get their money out of China than BTC at this point, esp with the new capital controls placed the last year.  One thing that is very important to remember in trading is that nothing is for sure. Always set stops and follow your rules.  I have found this to be relevant in all types of transactions, mostly the hard way 

I don't think this is very likely

The price of Bitcoin doesn't depend much on the value of the US dollar (I mean beside simply mechanistic correlation). It mostly depends on the price manipulation and that could work either way, i.e. if the manipulators see that they can safely grab traders' money, then the Bitcoin price will rise simultaneously with the dollar (and vice versa). Otherwise, you will have difficulty explaining the recent Bitcoin rally while the USDX had been on the rise too

Yeah, correlations have been all messed up since the beginning of the year, well, since the election, but really bad since the New Year. The positive oil/USD/ES correlation just broke over the last two days, started on the 3rd when markets opened for the year.  I was not trying to imply that the two were 100% correlated, and I am sorry if that is what you came to believe.  I am not sure what you mean by mechanistic correlation

If Bitcoin's own value doesn't change, its price will depend mechanistically (like in a knee-jerk reaction) on the USD/CNY exchange rate, since Bitcoin is largely traded for these two currencies (and consequently priced in). So, if the dollar goes up against the Yuan, the Bitcoin price in dollars will evidently go down. But given that Bitcoin volatility by far exceeds the changes in the USD/CNY exchange rates (let alone changes in the USDX index), Bitcoin price is determined more by market manipulation than the value of the US dollar itself (which was your point), and that could play any way...

Regarding 600 dollars per bitcoin, this is a possibility but surely not due to dollar appreciation in the range of only a few percentages

[antonina2]

Should the DX rally to 106, BTC could easily fall to unter the $600 mark. It is a very thin trade and therefore prices are subject to extreme movement, that said, it could hit $3K this year as well. To be perfectly honest the Chinese have better ways to get their money out of China than BTC at this point, esp with the new capital controls placed the last year.  One thing that is very important to remember in trading is that nothing is for sure. Always set stops and follow your rules.  I have found this to be relevant in all types of transactions, mostly the hard way 

I don't think this is very likely

The price of Bitcoin doesn't depend much on the value of the US dollar (I mean beside simply mechanistic correlation). It mostly depends on the price manipulation and that could work either way, i.e. if the manipulators see that they can safely grab traders' money, then the Bitcoin price will rise simultaneously with the dollar (and vice versa). Otherwise, you will have difficulty explaining the recent Bitcoin rally while the USDX had been on the rise too

Yeah, correlations have been all messed up since the beginning of the year, well, since the election, but really bad since the New Year. The positive oil/USD/ES correlation just broke over the last two days, started on the 3rd when markets opened for the year.  I was not trying to imply that the two were 100% correlated, and I am sorry if that is what you came to believe.  I am not sure what you mean by mechanistic correlation

If Bitcoin's own value doesn't change, its price will depend mechanistically (like in a knee-jerk reaction) on the USD/CNY exchange rate, since Bitcoin is largely traded for these two currencies (and consequently priced in). So, if the dollar goes up against the Yuan, the Bitcoin price in dollars will evidently go down. But given that Bitcoin volatility by far exceeds the changes in the USD/CNY exchange rates (let alone changes in the USDX index), Bitcoin price is determined more by market manipulation than the value of the US dollar itself (which was your point), and that could play any way...

Regarding 600 dollars per bitcoin, this is a possibility but surely not due to dollar appreciation in the range of only a few percentages

Thank you for that, I am learning about BTC pricing

[Paultron]

Well the fact is that the Chinese people are dumping because there are mostly coming some regulations what is bad for them.