50K bidwall at 2.30 - Crash over?

[phorensic]

Just made 10% off that last "crash" to $2.20    I really like this "manipulator" guy.

He is making this easy, isn't he?

Absolutely!  Volatility like this makes it really easy to make 5-10% profit trades.  I have guessed right on the peak and the valley 4 times in a row during this action!

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[phorensic]

Those bitcoin traders who wised up to this behaviour months ago are riding the waves, others are getting crushed by them time and time again.

You nailed it dude.  I learned how to trade the BTC market months ago.  This is just more of the same, but more fun because 50k BTC is being thrown around like mad.  I couldn't trade stocks like this (practice virtual account) but the Forex market is *very* similar to the BTC [forex essentially] market so I opened up a practice Forex account with one of the larger MM's, used my BTC trading skills, and pulled away with almost 100% profitable trades.

[Cluster2k]

New 'wall' at $2.20!  We're saved!      

[bittenbob]

I see they are back with 60k at 2.20. I wonder how long before they pull out this time if the trend continues?

Edit

Correction I see 50k

[StewartJ]

Just made 10% off that last "crash" to $2.20    I really like this "manipulator" guy.

He is making this easy, isn't he?

Absolutely!  Volatility like this makes it really easy to make 5-10% profit trades.  I have guessed right on the peak and the valley 4 times in a row during this action!

Hey Phorensic, you rock. I am trying to figure this out too, see if a modest but almost sure 5% return can be gotten.

Are you doing well on Forex?

SJ

[StewartJ]

Those bitcoin traders who wised up to this behaviour months ago are riding the waves, others are getting crushed by them time and time again.

You nailed it dude.  I learned how to trade the BTC market months ago.  This is just more of the same, but more fun because 50k BTC is being thrown around like mad.  I couldn't trade stocks like this (practice virtual account) but the Forex market is *very* similar to the BTC [forex essentially] market so I opened up a practice Forex account with one of the larger MM's, used my BTC trading skills, and pulled away with almost 100% profitable trades.

So your practice forex account is not real money? Can you explain what you mean by "larger MMs" ?

 I would like to open a Forex account too !

SJ

[Cluster2k]

So, what do we reckon about the fake $2.20 support and the rising price this time?  Another pump 'n dump cycle coming in the next couple of hours?  The market may be wisening up to this (finally) as there's only $1200 or so required to go from $2.30 to the $2.20 'wall'.

[proudhon]

So, what do we reckon about the fake $2.20 support and the rising price this time?  Another pump 'n dump cycle coming in the next couple of hours?  The market may be wisening up to this (finally) as there's only $1200 or so required to go from $2.30 to the $2.20 'wall'.

There'll probably be another build up period with volume piling up a little bit ahead of the bid wall pushing the price as high as 2.5, maybe even a little more.  Then the big wall(s) will come down, this guy'll sell into the fresh bids, there'll be another flurry of panic selling and we'll setup for it to happen again at a lower price.  My guess is this will keep happening until whoever this is has rid himself of bitcoins in exchange for money he can actually use for something.

[bittenbob]

So, what do we reckon about the fake $2.20 support and the rising price this time?  Another pump 'n dump cycle coming in the next couple of hours?  The market may be wisening up to this (finally) as there's only $1200 or so required to go from $2.30 to the $2.20 'wall'.

There'll probably be another build up period with volume piling up a little bit ahead of the bid wall pushing the price as high as 2.5, maybe even a little more.  Then the big wall(s) will come down, this guy'll sell into the fresh bids, there'll be another flurry of panic selling and we'll setup for it to happen again at a lower price.  My guess is this will keep happening until whoever this is has rid himself of bitcoins in exchange for money he can actually use for something.

Unfortunately this type of behavior is what makes it unattractive for vendors to accept BTC for purchases. Such volatility means they will not be able to accept BTC for purchases without say a 20% surcharge in order to hedge their bets against losses. You cannot pay your rent or taxes with Bitcoins. At least not anywhere I know. I bet this speculator is on this board and is one of the people trying to drive the price down to $1.50 or lower. Still based on previous data we could see a genuine increase back above $3 in the next couple of days.

[phorensic]

Those bitcoin traders who wised up to this behaviour months ago are riding the waves, others are getting crushed by them time and time again.

You nailed it dude.  I learned how to trade the BTC market months ago.  This is just more of the same, but more fun because 50k BTC is being thrown around like mad.  I couldn't trade stocks like this (practice virtual account) but the Forex market is *very* similar to the BTC [forex essentially] market so I opened up a practice Forex account with one of the larger MM's, used my BTC trading skills, and pulled away with almost 100% profitable trades.

So your practice forex account is not real money? Can you explain what you mean by "larger MMs" ?

 I would like to open a Forex account too !

SJ

MM = Market Maker.  One of the two types of brokers on forex.  I played around on http://fxtrade.oanda.com/ and had a lot of fun, really like that platform.  I highly recommend you read *everything* here http://www.babypips.com/school/ before messing with forex, especially if you want to throw real money into it.  Use the practice account for months before you lose real money, lol.  I still don't have the capital or guts to open up a real account.  I only trade with real money on BTC because all my coins are mined, my cards are paid off, and I get "free" electricity, so I have no risk.

[StewartJ]

MM = Market Maker.  One of the two types of brokers on forex.  I played around on http://fxtrade.oanda.com/ and had a lot of fun, really like that platform.  I highly recommend you read *everything* here http://www.babypips.com/school/ before messing with forex, especially if you want to throw real money into it.  Use the practice account for months before you lose real money, lol.  I still don't have the capital or guts to open up a real account.  I only trade with real money on BTC because all my coins are mined, my cards are paid off, and I get "free" electricity, so I have no risk.

Thanks, I will take a look at Forex, I have been meaning to look into for playing the market with currency and gold/silver.

So you are a btc miner, sounds like you have an edge and are doing well for yourself. Congrats,

SJ

[Cluster2k]

So, what do we reckon about the fake $2.20 support and the rising price this time?  Another pump 'n dump cycle coming in the next couple of hours?  The market may be wisening up to this (finally) as there's only $1200 or so required to go from $2.30 to the $2.20 'wall'.

There'll probably be another build up period with volume piling up a little bit ahead of the bid wall pushing the price as high as 2.5, maybe even a little more.  Then the big wall(s) will come down, this guy'll sell into the fresh bids, there'll be another flurry of panic selling and we'll setup for it to happen again at a lower price.  My guess is this will keep happening until whoever this is has rid himself of bitcoins in exchange for money he can actually use for something.

Unfortunately this type of behavior is what makes it unattractive for vendors to accept BTC for purchases. Such volatility means they will not be able to accept BTC for purchases without say a 20% surcharge in order to hedge their bets against losses. You cannot pay your rent or taxes with Bitcoins. At least not anywhere I know. I bet this speculator is on this board and is one of the people trying to drive the price down to $1.50 or lower. Still based on previous data we could see a genuine increase back above $3 in the next couple of days.

Very true.  No sane merchant would ever trade in a commodity/currency that can change several percent in value within the space of a minute.  All the arguments for using BTC fly out the window when the merchant needs to put a hefty margin on their sales to compensate compared to using traditional currencies.

I also agree that the chief person responsible for today's mischief is almost certainly reading these posts.  They're putting on a good show and making MtGox Live interesting to watch, but pumping and dumping the market too often can kill the golden goose.

[Technomage]

Very true.  No sane merchant would ever trade in a commodity/currency that can change several percent in value within the space of a minute.  All the arguments for using BTC fly out the window when the merchant needs to put a hefty margin on their sales to compensate compared to using traditional currencies.

I find it surprising that a long time poster can say something like this. It's entirely possible to accept Bitcoins for payment with ZERO currency risk. Either by using a payment system such as bitpay and in that case the merchant doesn't even have to know what Bitcoin is. The other option is to set up a do-it-yourself system but this requires knowledge of Bitcoin and IT.

I don't expect this from clueless posters such as proudhon but come on...

[Cluster2k]

Very true.  No sane merchant would ever trade in a commodity/currency that can change several percent in value within the space of a minute.  All the arguments for using BTC fly out the window when the merchant needs to put a hefty margin on their sales to compensate compared to using traditional currencies.

I find it surprising that a long time poster can say something like this. It's entirely possible to accept Bitcoins for payment with ZERO currency risk. Either by using a payment system such as bitpay and in that case the merchant doesn't even have to know what Bitcoin is. The other option is to set up a do-it-yourself system but this requires knowledge of Bitcoin and IT.

I don't expect this from clueless posters such as proudhon but come on...

It's been said before but... if you're going to get rid of your BTC as soon as you receive them (to not carry currency value risk), then why deal in BTC at all?  BTC payment services and BTC<->USD transfers aren't free.  The merchant is creating another layer of paper work for themselves.  The only advantage is no charge backs, but as a customer I want to be able to charge back a dodgy business.

[Revalin]

then why deal in BTC at all?

Cheaper than PayPal or credit cards (even with trading fees)
Much cheaper than other irrevocable payments (wire transfers)
Easier for international buyers
Works for things that PayPal doesn't allow like virtual goods, porn, or Wikileaks
Privacy / anonymity
Microtransactions

I'd love to use it for a value store as well, but that will wait.

[mjcmurfy]

as a customer I want to be able to charge back a dodgy business.

As a customer, why would you take risks on dodgy businesses in the first place?

You should trust those who you intend to transact with, if not - then find a trustworthy alternative. If you decide on a whim to take the risk anyway, why should I have to pay for your mistake when you get suckered out of your money?

By having to pay I am referring to the fact that I am forced to also concede to chargebacks as a business, or as a consumer am required to pay higher prices to cover the CC fees passed on to me by businesses to pay for the cost of the chargeback process.

Do your own due diligence. Expecting others to do it for you is naive.
When you throw caution to the wind, you cannot also expect to have a safety net if things don't go your way.

It's completely childish.
"MOMMY!!! The dodgy man lied to me. He told me these beans were magic!!! WAAAA"

[nmat]

Cheaper than PayPal or credit cards (even with trading fees)
Much cheaper than other irrevocable payments (wire transfers)
Easier for international buyers
Works for things that PayPal doesn't allow like virtual goods, porn, or Wikileaks
Privacy / anonymity
Microtransactions

I'd love to use it for a value store as well, but that will wait.

Just to add that some people might prefer to pay with bitcoins than with paypal. If it is a simple system to setup with small fees and brings additional customers, then why not?

Ideally, people should be able to hold on to bitcoins without losing lots of money, but we are not there yet.

[Technomage]

Ideally, people should be able to hold on to bitcoins without losing lots of money, but we are not there yet.

True, but unless Bitcoin completely dies, it'll get there eventually. The economic model of Bitcoin ensures this.

[BadBear]

as a customer I want to be able to charge back a dodgy business.

As a customer, why would you take risks on dodgy businesses in the first place?

You should trust those who you intend to transact with, if not - then find a trustworthy alternative. If you decide on a whim to take the risk anyway, why should I have to pay for your mistake when you get suckered out of your money?

By having to pay I am referring to the fact that I am forced to also concede to chargebacks as a business, or as a consumer am required to pay higher prices to cover the CC fees passed on to me by businesses to pay for the cost of the chargeback process.

Do your own due diligence. Expecting others to do it for you is naive.
When you throw caution to the wind, you cannot also expect to have a safety net if things don't go your way.

It's completely childish.
"MOMMY!!! The dodgy man lied to me. He told me these beans were magic!!! WAAAA"

Ah, the old "Its YOUR fault for getting scammed, suck it up!"

[mjcmurfy]

Ah, the old "Its YOUR fault for getting scammed, suck it up!"

I suppose you could reduce it to that statement, albeit rather simplistically. Do you have a point?

Reasons for being scammed:
1) Falling for a confidence trick
2) Trying to get a too-good-to-be-true deal
3) Trying to turn a fast buck
4) Stupidity
5) All of the above

I have never in my life been scammed because I am cautious about who I give my money to, I know that if a deal sounds too good to be true it probably is, I make sensible investments and I have informed myself quite well thanks to a good education.

I feel bad for honest people who get scammed, but if people have a permanent false sense of security, then where is the incentive to be prudent with your money? If we keep giving people who get scammed their money back, they will never learn and the scam artists run riot. It's a tough but necessary lesson in economics.

I don't want to be footing the bill for the mistakes of others when I have gone to great lengths to ensure that I don't make those mistakes myself.

If they want a safety net, maybe all the idiots in the world can come together and create themselves some sort of 'idiot insurance'. I don't want any part of it though. If they want protection then they will have to pay the cost of their own stupidity themselves.