The Bounce is Official

[theonewhowaskazu]

That was the biggest dip in months (in terms of both distance dipped, and time we stayed down) but looks like we're bouncing right back.

Bitcoin's resilience is growing.

[ElectricMucus]

lol

[Anon136]

that is my impression also. new highs on the horizon.

[MAbtc]

Well, I guess we'll see where this goes. Bull traps wouldn't be such if they weren't convincing, after all. 

[Hfertig]

It looks like a bull trap to me.

[Edward50]

I am watching this closely and must say I am surprised it rebounded so quickly.
Volume also seems low and it is not a good sign that it has not reached over 1,000 yet.

I honestly do not know where it will go at this point so that may mean it may just stay around where it is

I do know the first bubble took a fairly long time to deflate from the $30 to $2.01 and had its ups and downs like this.

I am still convinced that many people are slowly cashing out and because they are not trusting the exchanges with too much of their money at one time, they will take advantage of this time to continue to cash out. I worry that there will not be enough buyers buying at such a high price to cash out all the people who want out. The downward pressure may win here.

[Anon136]

not trusting the exchanges with too much of their money at one time, they will take advantage of this time to continue to cash out.

this is a good incite. i hadn't thought about it that way.

[GigaCoin]

It looks like a bull trap to me.

[Soopaman]

I smell bull trap. I don't trust this level of optimism after such a quick rebound.

That said, I hope I'm wrong.

[Hfertig]

I am watching this closely and must say I am surprised it rebounded so quickly.
Volume also seems low and it is not a good sign that it has not reached over 1,000 yet.

I honestly do not know where it will go at this point so that may mean it may just stay around where it is

I do know the first bubble took a fairly long time to deflate from the $30 to $2.01 and had its ups and downs like this.

I am still convinced that many people are slowly cashing out and because they are not trusting the exchanges with too much of their money at one time, they will take advantage of this time to continue to cash out. I worry that there will not be enough buyers buying at such a high price to cash out all the people who want out. The downward pressure may win here.

People need to cash out slowly. Imagine, if just 2% of all people cash out quickly (or everyone just sells 2%). That would be 240,000 coins hitting the exchanges. Look at the order books and make your own guess...

Remember that if someone is going to dump 1000 coins on Gox now, we would approximately go down by 40 USD. The guy doing that would have pocketed around USD 880.000, but the Bitcoin marketcap would decrease by USD 480 Mio.

EDIT: (not implying that one person can move the market as such, I just want to point out how fragile the whole wealth in Bitcoin is)

[zby]

I smell bull trap. I don't trust this level of optimism after such a quick rebound.

That said, I hope I'm wrong.

The Chinese news was quite wrongly interpreted - I don't consider it too surprising that the price rebound after people realized the confusion. On the other hand the price is bloody high.

[Hfertig]

I smell bull trap. I don't trust this level of optimism after such a quick rebound.

That said, I hope I'm wrong.

The Chinese news was quite wrongly interpreted - I don't consider it too surprising that the price rebound after people realized the confusion. On the other hand the price is bloody high.

I don´t think the news caused the crash, it was just the trigger of a healthy correction. The double top was forming anyway. 1 BTC = 1 ounce of Gold was not sustainable. And you are very right, the price is still bloody high...

[quone17]

I think there needed to be something that was going to trigger a correction and I bet most people were just looking for some reason to sell, at least some of their coins, and there was the China news right on cue.  The question is whether anything else will happen soon.  What about the chances of closing the new Silk Road?

[meanig]

Keep an eye on the Gox bid sum. Pre-crash is was consistently over $35million. Post crash low was only $24million. Now it's back to $34million. If it keeps heading towards the $40million mark I think we'll be touching the ATH by Christmas.

[sgbett]

Yes I don't know why but it feels like almost a return to normal. It feels good 

Lol. Very good

[GigaCoin]

Keep an eye on the Gox bid sum. Pre-crash is was consistently over $35million. Post crash low was only $24million. Now it's back to $34million. If it keeps heading towards the $40million mark I think we'll be touching the ATH by Christmas.

Good note, a few days ago i've started looking at the bid sums, i can see it as an indicator.

Interestingly Fiatleak proved pretty useful to me, yesterday the buys were insane however the price wasn't going up until few hours later it jumped from $700 to $900. It seems a whole new wave of buyers got in at the $650-$700 range

[DeathAndTaxes]

Two words:  low volume.
Now that might change but until it does it doesn't show any conviction in the reversal.

[MAbtc]

Two words:  low volume.
Now that might change but until it does it doesn't show any conviction in the reversal.

My thoughts as well.

[gooryheta]

Remember that if someone is going to dump 1000 coins on Gox now, we would approximately go down by 40 USD. The guy doing that would have pocketed around USD 880.000, but the Bitcoin marketcap would decrease by USD 480 Mio.

Thats why Bitcoin market cap is not usefull indication of anything, what matters are the buy orders placed

[Spaceman_Spiff]

I smell bull trap. I don't trust this level of optimism after such a quick rebound.

That said, I hope I'm wrong.

+1
I am not really sure, but I am guessing its a bull trap.