Huge movement

[navidos]

Hi there !

I just want to know the reason of all this huge up and down for BTC's price.

Any idea?

[empoweoqwj]

someone sold 20,000ish bitcoins a few hours ago at mtgox - expect plenty of action over the next 24 hrs

[ruletheworld]

someone sold 20,000ish bitcoins a few hours ago at mtgox - expect plenty of action over the next 24 hrs

Was the order completed or is it still in progress? If it is completed, I don't see why there should be huge movements after the fact, unless some story comes out about the reason for this.

[BitPappa]

Was the order completed or is it still in progress? If it is completed, I don't see why there should be huge movements after the fact, unless some story comes out about the reason for this.

In my mind, a big sale like that moves the market down, which stirs both fear (will it drop more?) and greed (yay, BTC is on sale), thus more volatility as more people trade.

[navidos]

Why it goes down? Also this huge amount

[ruletheworld]

Was the order completed or is it still in progress? If it is completed, I don't see why there should be huge movements after the fact, unless some story comes out about the reason for this.

In my mind, a big sale like that moves the market down, which stirs both fear (will it drop more?) and greed (yay, BTC is on sale), thus more volatility as more people trade.

Good point. Since BTC isn't that liquid anyway, I guess the equilibrium will be harder to reach between these two. If the same thing happens on say a stock market, the equilibrium will reach very quickly and price will stabilize, either up or down.

[monsterer]

Why it goes down? Also this huge amount

I wrote this article a while back which contains details about how and why prices 'move' in market:

http://www.wildbunny.co.uk/blog/2013/03/15/algorithmic-trading-for-dummies/

Cheers, Paul.

[navidos]

Why it goes down? Also this huge amount

I wrote this article a while back which contains details about how and why prices 'move' in market:

http://www.wildbunny.co.uk/blog/2013/03/15/algorithmic-trading-for-dummies/

Cheers, Paul.

Thx buddy

[abednego]

In the longer term timeframe it's not that big of a move... scroll out your charts.

[ruletheworld]

Why it goes down? Also this huge amount

I wrote this article a while back which contains details about how and why prices 'move' in market:

http://www.wildbunny.co.uk/blog/2013/03/15/algorithmic-trading-for-dummies/

Cheers, Paul.

Paul, I doubt these kinds of algorithmic trading exist with Bitcoin. For one, the financial industry still isn't in the game yet due to the ambiguity surrounding the legal aspects of Bitcoin I am guessing. Also, the BTC market is far from efficient - it isn't even leverage free!

[monsterer]

Paul, I doubt these kinds of algorithmic trading exist with Bitcoin. For one, the financial industry still isn't in the game yet due to the ambiguity surrounding the legal aspects of Bitcoin I am guessing. Also, the BTC market is far from efficient - it isn't even leverage free!

Well, the article does address one of the questions in this thread about what causes prices to move, so I posted it.

As to whether you can run trading algorithms on bitcoin, you should probably take a look at some of the articles in this very sub-forum titled '...trading platform...' because there are *a lot* of them. Also, I have no idea what you mean by 'leverage free' bitcoin is a market where the natural state of exchange is 0 leverage.

[navidos]

Why it dropped again?

From 120 to 109

[reactor]

It is simple market manipulation.  Easy to watch process:

Sell a bunch
People freak / put up a wall so price can't rise
Repeat...
Take wads of cash a buy tons of cheap coin, drive price up.
Repeat...

It's the problem with the market as-is, dead-simple to manipulate if you already have a few hundred thousand dollars to push around.  The numbers are simple and the behavior predictable, and sadly the probably future of the market. 

Or AsicMiner is continuing to bleed the market dry by dumping their mining profits for their continued cash-out of BTC.  Either-or.

[tokeweed]

Why it dropped again?

From 120 to 109

lots of selling. i wouldnt be surprised if some were short btc. is coinsetter's service online yet?

[Random Bit]

Corrections to a market is good if your on the right side of the fence...   

[tokeweed]

it already corrected from 250. did a bounce, then went sideways for a while. this is a sell down.

dont deny yourselves of the fact that bitcoin is going down right now. the more important thing is to know what to do.

[nii236]

it already corrected from 250. did a bounce, then went sideways for a while. this is a sell down.

dont deny yourselves of the fact that bitcoin is going down right now. the more important thing is to know what to do.

Sooo... what to do?

[c0inbuster]

SELL !!!!!

I'll buy your cheap coins 

[jeannie]

I really hope it will go up soon, mining is very expensive.

[tokeweed]

it already corrected from 250. did a bounce, then went sideways for a while. this is a sell down.

dont deny yourselves of the fact that bitcoin is going down right now. the more important thing is to know what to do.

Sooo... what to do?

sell. then buy back at cheaper prices.