Ok, so if we are to believe the hype, the Chinese are dumping like crazy, and also many other weak hands. So question is, who is buying this up? Surely the smart money has held on till around the $3000 level before jumping in. So who/why is anyone actually buying over the last few days?
Geez... I can't believe that these kinds of questions exist. I don't feel like spoon feeding you the answer - but here is something I would like you to think about:
If you are the Chinese that you were referring to as "dumping like crazy", are you going to dump your bitcoin @ $3000 right away? Of course not... You will definitely sell it at the highest as possible, correct? Now, because the volume of sellers outnumbered the buyers, the latter are the ones who are bidding how cheap they want to buy bitcoin. The buyers take advantage of the Chinese's need to cash out their bitcoins, and since there are lesser number of buyers than sellers, that leaves the Chinese no choice but to bargain at the cheapest just to make a transaction.
And then here comes the weak hands (most probably are not Chinese) panicking about the price, which eventually adds up to the volume of sellers, which gives more power to the buyers to ask for lower price. And then repeat... and repeat... until the weak hands are extinct.
And then bullish.
I hope this makes sense. Aren't you going to HODL now?