It's because in the whales' quest for margin call hunting (first Bitfinex, then BTC-e), they have effectively killed the market, killed off all confidence in it now. No sharp bounce from a local bottom like they expected, no strong support signal like we had in April. Completely reversing all the upward progress and momentum from mid- May.
People who bought at the beginning of the year are now tired and fearful of this market. People who bought since mid- May are now tired and fearful of this market. So who's left to buy now?
Looking at the charts, it looks a lot like 2011.
Post of the day.
Mt. Gox is also part of the problem. Most people are unwilling to leave fiat on an exchange, so there is a 4 business day lag before new buying can start.
