Stick to your valuation -- require a profit

[realnowhereman]

So, there's bitcoin prices ticking up quite nicely, when someone with enormous deep pockets dumps 25k coins; driving the price to 5.3.

That's fine.  I'm not one of these people who hates on "the manipulator".  The order books show a load of bids; and the manipulator is perfectly entitled to take them up on their offers.

Here's the thing though... the ask side fills up instantly behind the huge drop; and that's our fault.  If you valued your bitcoins for sale at $5.65, or you were holding out for a profit at $5.7 don't suddenly accept a loss because someone takes a dump.

If you were running a business you would value your product and you would offer it for sale.  Do the same with your bitcoins.

The worst of it is, that the person taking a dump wants us to fill in the ask side after they dump -- that's why they're doing it.  The only way we'll stop this sort of behaviour is by making sure it's not profitable for them -- it's not profitable for them if it is profitable for you.  Remember that and the "manipulator" has nothing to work with.

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[realnowhereman]

Oh look, "someone" just bought 8,000 coins.

I wonder who that could possible have been.</sarcasm>

[N12]

Bitcoin price valuation depends on the projection of past to future prices.

Or do you think people will check the fundamentals, conclude a price of 5.7 and stick with it?

Think about how people down to 5.3 acquired coins, and the price goes back to 5.7 – they can now make a profit and compete with the guys who bought at 5.7! There is also a psychological effect, because people see a rise less likely.

It makes perfect sense to reduce your ask offers.

[realnowhereman]

Bitcoin price valuation depends on the projection of past to future prices.

Or do you think people will check the fundamentals, conclude a price of 5.7 and stick with it?

Over the course of 15 minutes?  Yes, I think they probably should.

I'm not saying never change your mind; I'm saying if you think your bitcoins are worth $5.65 then the fact that someone sells 40,000 of them in a blatent price dropping attempt shouldn't be enough to make you suddenly value them at $5.45.

...

Oh look, we're about have passed $5.75 again.  Now that we're at that point... everyone ask yourself "did I profit from my actions over the last hour"?  Did you instantly adjust your sell price to fill in the gap left by the big dump?  If you did, then you gifted your profit to the person with the deeper pockets.