Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[CoinArtist]

There is not a lot of visible buy support and it could potentially flash crash on a low volume,  unless there are a lot of hidden orders.  However,  lately these books aren't nearly as reliable as they used to be and only serve as a partial indicator.

Watch out - order books are just about the most unrealiable indicator known to man for guaging demand.

Here's how they work:

[1] - if the market thinks the price is going to rise (doesn't have to be bullish sentiment, just expecting a rise)

Then the bids will thin out and the asks will thicken. This is because real demand goes off-order-book since nobody wants to push the price up more than they have to by placing orders so buyers stay hidden since they are not confident of having their orders filled below the spread gap.

Meanwhile, sellers DO place their orders at a measured distance above the spread gap so that they catch any spikes which lets them instantly cycle back into the market minutes later having accumulated at the back end of the spike.

[2] - if the market thinks the price is going to fall

Then exactly the opposite happens. The bids fill up and the asks thin out because fear has set in and sellers are nervous of placing orders that chase away precious liquidity, so sellers stay off-order-book this time. Meanwhile, large bids get placed a reasonable distance below the spread gap to catch any major dumps. Those large bids are not from people wanting to buy into the market (i.e. they are not genuine demand). They are "quick buck" operators who will immediately sell into the rise that follows the spikey plunge.

If the order book is balance, then the market is neutral in terms of expectation.

You can see this in realtime on Huobi in Bitcoinwisdom. As soon as the slightest small bull rally takes off, massive asks get instantly placed at intervals above the price, even though the price is rising. Then they get pulled just as the price approaches when there's no longer enough of a spread gap to turn the trade around and get back in with an accumulation.

So don't think for a minute that because there's a lot of bids that means there's a lot of demand or because there's a lot if asks there's a lot of bears. It's more likely that the exact opposite applies.

Thank you for this. Enlightening stuff! 

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[European Central Bank]

XBT provider taken over by Global Advisors. That's a neat little turn.

http://bravenewcoin.com/news/global-advisors-acquired-xbt-provider-after-knc-miner-filed-for-bankruptcy/

[dumbfbrankings]

4

[BlindMayorBitcorn]

4

[calme]

Say goodbye to the Earthlings b/c we'll be bouncing hard

[Xiaoxiao]

4

Do you have like $5,000,000 of USD waiting to buy or something?

[BlindMayorBitcorn]

4

Do you have like $5,000,000 of USD waiting to buy or something?

Who here doesn't?

[adamstgBit]

if you have 5,000,000 in fiat this info might be worth somthing to you



<700 will become a technical impossibility after the 23rd


your welcome.

[adamstgBit]

tones of girls partying in my apartment right now.

its kind of annoying...

i gtg.

[mcplant]

fruit helps me speculate better. did you know raw fruits and vegetables contain measurable ammounts of electro magnetic energy. our species is frugivorous, meaning we are meant to eat primarily fruit. so it will adjust the mind to think it's clearest. oh and when you place something directly in the moonlight it will become colder than if you placed it in shade out of it.

[calme]

We should have mcplant go onto the news and promote BTC

[adamstgBit]

fruit helps me speculate better. did you know raw fruits and vegetables contain measurable ammounts of electro magnetic energy. our species is frugivorous, meaning we are meant to eat primarily fruit. so it will adjust the mind to think it's clearest. oh and when you place something directly in the moonlight it will become colder than if you placed it in shade out of it.

wait we aren't suppose to smoke weed drink beer and eat stake?

FML

[adamstgBit]

once we hit

747

this thing is going to take off.

[dumbfbrankings]

fruit helps me speculate better. did you know raw fruits and vegetables contain measurable ammounts of electro magnetic energy. our species is frugivorous, meaning we are meant to eat primarily fruit. so it will adjust the mind to think it's clearest. oh and when you place something directly in the moonlight it will become colder than if you placed it in shade out of it.

wait we aren't suppose to smoke weed drink beer and eat stake?

FML

Only if you can provide proof of steak, tomorrow morning.

[bitebits]

is this upcoming auction going to have much of an effect?
i'm just curious as to what you guys think as i dont see it mentioned much in here...
http://www.cnbc.com/2016/05/30/australia-to-auction-115-million-confiscated-bitcoins.html

nice pump and dump the day of or after.
past auctions have pumped prices and then after price got dumped
but that was during a bear market.
This isn't a huge amount of coins ( its like half the size of the ?3? FBI auction ) so it might just lead to good press and not much else.

I actually think it is very positive news, beyond the actual auction. Australia basically gives Bitcoin it's stamp of approval by selling these confiscated bitcoins. Long term this can only be good for Bitcoin + it is a rather trivial amount of coins.

[dumbfbrankings]

is this upcoming auction going to have much of an effect?
i'm just curious as to what you guys think as i dont see it mentioned much in here...
http://www.cnbc.com/2016/05/30/australia-to-auction-115-million-confiscated-bitcoins.html

nice pump and dump the day of or after.
past auctions have pumped prices and then after price got dumped
but that was during a bear market.
This isn't a huge amount of coins ( its like half the size of the ?3? FBI auction ) so it might just lead to good press and not much else.

I actually think it is very positive news, beyond the actual auction. Australia basically gives Bitcoin it's stamp of approval by selling these confiscated bitcoins. Long term this can only be good for Bitcoin + it is a rather trivial amount of coins.

This is actually good for Bitcoion.

Well said, mate.

[Ethey]

is this upcoming auction going to have much of an effect?
i'm just curious as to what you guys think as i dont see it mentioned much in here...
http://www.cnbc.com/2016/05/30/australia-to-auction-115-million-confiscated-bitcoins.html

nice pump and dump the day of or after.
past auctions have pumped prices and then after price got dumped
but that was during a bear market.
This isn't a huge amount of coins ( its like half the size of the ?3? FBI auction ) so it might just lead to good press and not much else.

I actually think it is very positive news, beyond the actual auction. Australia basically gives Bitcoin it's stamp of approval by selling these confiscated bitcoins. Long term this can only be good for Bitcoin + it is a rather trivial amount of coins.

This is actually good for Bitcoion.

Well said, mate.

there was an auction of the shanyflakes bitcoins made some time this was also very sick

[RGR991]

Our Chinese overlords may be trying to pump it here 

[TERA]

It's funny how, when the price is going up, I'm totally convinced the nature of Bitcoin is to keep going up eventually to $32,768, and then when the price is going down, I'm totally convinced the nature of Bitcoin is to keep going down eventually to $1 after some grand plot is revealed (jaded penny stock investor), and the only difference changing my feelings... is the color of the candles.

[RGR991]

It's funny how, when the price is going up, I'm totally convinced the nature of Bitcoin is to keep going up eventually to $32,768, and then when the price is going down, I'm totally convinced the nature of Bitcoin is to keep going down eventually to $1 after some grand plot is revealed (jaded penny stock investor), and the only difference changing my feelings... is the color of the candles.

It is only human nature, it is why opportunities are created in times of extreme greed as well as extreme fear.

I would gladly take trading on the OTC markets over Finex,Huobi and Okcoin  at least the OTC is not working to manipulate the price like these exchanges probably are.