But since nobody (besides you?
) knows where the bottom is, judging by your logic everybody would start buying once the price moves somewhat up, creating an avalanche effect (rally).
I think, short term we may fall even further but I am not selling ATM, too risky. The breakout can start any week now. If the price falls to 2-ish region, I'm doubling my position, sending more money in
Here's something to think about: this is a graph of bitcoin money volatility, how much old money moved around. Obviously, the activity is not slowing down. Something is cooking.
http://banana.mine.nu/daysdest.html