FLASH CRASH - JUST SAY NO
I just wanted to chime in that there is no flash crash mechanism in bitcoin. Since the bitcoin exchanges don't have STOP orders, they only offer LIMIT orders. Read that as LIMIT="sell/exit if it goes up to this price."
With no resting STOP order below the market, there can be no cascade effect of resting orders. Wow, did that sound technical or what.
{Translation Follows}
Imagine a huge pool of sell orders. A bunch at 1000, a bunch at 900 a bunch at 800. A flash crash would be if the 1000 touch pushed the market down to 900, triggering that batch of sell orders which pushes the market down to 800, triggering that batch, etc. Hence the cascade.
BITCOIN DOES NOT HAVE THAT MECHANISM. The exchanges only allows orders "resting"
above the market. So there is nothing below 950 to cascade into. There was resistance at 900, but it got eaten up. Then pushed past it. Buyers are stepping in.
Okay, posting this chart again for the third time : ) I've never gotten so much value out of a single copy paste.
: )
cj
