What's with this small rally?

[wobber]

People got insane? Or is there something I'm not aware?

I see both Gox and Stamp rallying a bit.

[rmines]

Just another bulltrap.
Prices will drop again next week.

[Tzupy]

On the 21st February the markets (finally!) hit the bottom of the first 1 / 3 of wave C.
Now it's time for 2 upward sub-sub-waves. The corresponding moves in May 2013 pushed the price from 80$ to 136$, that's 70%.
Bitstamp may see 750$ - 800$ again (if seller pressure from MtGox won't push it down), while MtGox (if BTC withdrawals are enabled)
should see a crazy rally towards similar prices. This won't last, it's just temporary for a couple of weeks, capitulation will still come. 

[ElectricMucus]

some txs out of the mtgox transactions api stream got confirmed. Nobody checked whenever these are internal bookkeeping transactions or if something is actually leaving mtgox.

Oh well this even might be good news as it means mtgox at least still has some Bitcoins left...

[Edward50]

supposedly the rumor is that someone on reedit or something showed proof of Mt Gox allowing bitcoin withdrawals.

[kireinaha]

Let's not forget that it's currently 2 am in Japan, I highly doubt any real progress is being made on Gox withdrawals, so this is likely a panic driven pump and dump and will soon correct back down.

Also keep in mind Gox gave no specific date for their next update and showed no indication that progress was being made, which doesn't jive with the idea that people in the Gox inner circle are doing insider trading, unless they had some miracle breakthrough. This seems US driven.

[MatTheCat]

On the 21st February the markets (finally!) hit the bottom of the first 1 / 3 of wave C.
Now it's time for 2 upward sub-sub-waves. The corresponding moves in May 2013 pushed the price from 80$ to 136$, that's 70%.
Bitstamp may see 750$ - 800$ again (if seller pressure from MtGox won't push it down), while MtGox (if BTC withdrawals are enabled)
should see a crazy rally towards similar prices. This won't last, it's just temporary for a couple of weeks, capitulation will still come.  

I must admit that I am surprised by this rally as I thought that $540 would have fallen this time around. The 'bounce' seemed very weak and on very low volume up until this recent surge in the past couple of hours. Glad I wasn't shorting as I would have shorted Bitcoin at $580 in a second if I could have.

However, if we see as high as $750 again, then we would have to consider that the primary bear trend has reversed. To be honest however, I just don't feel it yet and Bitcoin is boring me increasingly with these bullshit rallies that are yelling to me "hey noob, grab all your cash and pile on in". I wish the thing would just finally play out and confirm reversal in proper 'honest' fashion.....but then I suppose bear markets are defined by a series off false hopes resulting in increasing investor 'boredom' or exasperation as each 'promise' after the other falls flat on its face.

Let's not forget that it's currently 2 am in Japan, I highly doubt any real progress is being made on Gox withdrawals, so this is likely a panic driven pump and dump and will soon correct back down.

Also keep in mind Gox gave no specific date for their next update and showed no indication that progress was being made, which doesn't jive with the idea that people in the Gox inner circle are doing insider trading, unless they had some miracle breakthrough. This seems US driven.

I have noticed that Bitstamp still seems to correlate with Gox. Since this doesn't make any sense to me, I can only assume that just as with most modern financial trading, the majority of Bitcoin trading volume is done via Bots, which are 'hooked up' to action on other exchanges, and have algorithms that will trigger buying or selling depending on what the other exchanges are doing. Seems that a lot of these bots are still hooked up to Gox price. If Gox are indeed allowing withdrawals again, then it makes sense that the Gox price jumps as as exasperated traders and arbitrage takers pile into Bitcoin in order to get their funds out of Gox......before then dumping on other exchanges, which in turn means bots triggering buying based on Gox jumping up in price is a 'self harming' action.

It doesn't make sense but that is how the whole apparatus seems to be working so I guess that is how it is.

[Wilhelm]

supposedly the rumor is that someone on reedit or something showed proof of Mt Gox allowing bitcoin withdrawals.

Read the article. It's full of assumptions. Could be the MtGOX guys getting all the BTC out while everyone remains trapped.

My assumptions based on more articles:
They moved the corporate headoffice to a virtual one. Classic move if you're liquidating all corporate assets and don't want customers to know yet.
Once the lawsuits come there is nothing left to reposes and no CEO to sue only an orphaned email box, phone line and an old server in some closet.

[GigaCoin]

mtgox positive news

[stylin]

It was a large group of traders getting in on the cheap prices. I think it was like $10 million of bitcoin bought up in one hour on Bitstamp and BTC-e. Call me paranoid but i believe these traders (Wall Street?) could've been behind the gox debacle.

Two scenarios
1. They could be trying to set up a big fall when Gox goes down and buy even more cheap coins
2. They manufactured the gox debacle in order to buy up cheap coins at times like these

[GigaCoin]

to be honest, this feels like a clear bull trap to me. who knows

[MatTheCat]

It was a large group of traders getting in on the cheap prices. I think it was like $10 million of bitcoin bought up in one hour on Bitstamp and BTC-e. Call me paranoid but i believe these traders (Wall Street?) could've been behind the gox debacle.

Two scenarios
1. They could be trying to set up a big fall when Gox goes down and buy even more cheap coins
2. They manufactured the gox debacle in order to buy up cheap coins at times like these

If Wall St want to get their hands on the lionshare of hoarded Bitcoin (some 10 million BTC), then $580 is not cheap coins. These people have the buying power to take a market position and then use their newly acquired selling power to drive the market down to double digits and hold it their for a seeming eternity waiting on hoarded coins to come out of hibernation and be dumped on the market, at double digit prices.

Wall St getting into Bitcoin is not going to be good for most little people because Wall St want to take as much value out of the pockets of other market participants as they can. They specialise in in this game and they will be victorious in this game should they decide to enter. Wall St is not going to pile into Bitcoin at these still historically very high prices saving the Johnny Come Lately November 2013 investments and further enriching all the other early adopters. No chance. These guys have infinitely deep pockets as far as Bitcoin's present market cap is concerned and have both the ability and the patience to shake a huge amount of 'hibernating' coin out of this market at ultra cheap rpices before allowing it to become appealing to Joe Public once again and allowing it to surge.

Joe public will ramp up the value of Wall St's Bitcoin holdings, not the other way around. Anyone who thinks otherwise just hasn't been paying attention to how this world works.

[MatTheCat]

Yeah, Wall Street is obviously buying all the walls on BTC-E.... that's exactly what's happening....

I don't think this btw.

I think this recent market action is just clumsy fucking bot trading. Dumb fucking money at its finest.

Man oh man. I am glad I can't short on Bitstamp, I would have got my knuts squeezed here. Was just looking at $580 and was chomping at the bit after a short trade.

[ElectricMucus]

MatTheCat, poes law

[gizmoh]

People got excited on this news ( Pump):

http://www.reddit.com/r/Bitcoin/comments/1ymb4r/some_light_on_the_horizon_for_gox/

However its been countered by gmaxwell (Reality):

http://www.reddit.com/r/Bitcoin/comments/1ymwzj/mtgox_still_authoring_invalid_transactions/

[rmines]

to be honest, this feels like a clear bull trap to me. who knows

I hate to tell you that I told you so, but I told you so 

[biafore]

to be honest, this feels like a clear bull trap to me. who knows

I hate to tell you that I told you so, but I told you so 

Bull trap of all bull traps short term, long term bear trap

[smoothie]

It is irrelevant.

Price of MTGOXBTC is all dependent upon MTGOX allowing withdrawals (full) in a meaningful time frame.

So far all I have seen is delays and pathetic excuses.

[keithers]

I think whats worst of all may come if/when Gox completely implodes. With the amount of people that lost money around the world, it will be the time that governments really step in and lays down the hammer

[Ibian]

I think whats worst of all may come if/when Gox completely implodes. With the amount of people that lost money around the world, it will be the time that governments really step in and lays down the hammer

Challenge accepted.