If/when we have a final capitulation, the price will stay higher than the low we have already had . . . It's psychology, support has been identified, and everyone will be racing to beat everyone else and buy before we dip to the support. If it coincides with a series of bad news, then maybe we would dip below, not likely unless a very specific set of circumstances arises.
While I do think that the low will probably be higher than our previous low, I disagree that "support has been identified".
1. The last two high volume days ended in 570 and 455, respectively. There was no higher low, indicating a support. Instead, a possible downtrend is indicated. If you take april, on the other hand, there were three high volume crashes ending in 55, 50, and 78, confirming that a hard support had been found at 50.
2. The last bounce was influence by China. All exchanges were following btcchina when it suddenly started buying out thousands of btc. Now if the chinese exchanges get taken out, we don't know what'll happen.
+1
I still think this is all irrelevant, though - Bitcoin will not fail because of China, and if it will not - then it is not going away, so the financial world will need to incorporate it.
Where is Western Union's business model if Bitcoin is better? Value transfer is BIG money and it is way overdue for a change.
It may not be Bitcoin, but it will be something and it must be a network which is currency neutral.
I think BTC is not perfect, but it is there. Ergot, it will be used.
We are Microsoft, there will be an Apple and a Google to follow, but right now, warts and all it is Bitcoin that is the only game in town.
