Huobi + Bitfinex both have solid order books, 5k coins to sell it down, only needing 500 to buy it back up. Huobi is bouncing nicely. Bitstamp just looks bearish as hell, so many coins there, not sure why the huge difference in exchanges. $11 difference with Huobi+stamp. Bitfinex is torn between the two, doesn't know which way to go.
Leverage, maybe?
It is easy to place a buy $20-50 below market price, but that does not mean the order won't be cancelled when the buyer realizes he can probably buy $20 cheaper in a week. Placing an order is not a contract to buy at that price.
When we were at 510, there were 12k coins to 580. I estimated less than 50% of those were actually executed. The rest were cancelled.
Bitstamp, IMHO, is more realistic about orders that will actually happen.
As a personal example, I had a low ball order at 480 in case of a long squeeze (when we were at 510). I cancelled it when I saw the effort and number of dumps that occurred to break 500, knowing we would not see 500 for a long time. Now, I have a big order at 425 for the same reason as the 480.
I never believe orders books, bid/ask ratios, etc., more than $10 away. They are a mirage.
Edit: one more example. Most of the way from 590 to 530, bids outnumbered asks 1.5-1.8:1. Price continued dropping constantly.
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