Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 32364. (Read 26469905 times)

at the risk of getting slaughtered here, does no one feel the price is being propped up? don't get me wrong i've been well wrong since July consistently but I dont see unabashed demand for bitcoins, i see huge buys at 4 AM UK time when the US is starting to go to bed and massive bid walls appearing as has been the case it seems from 75 onwards.

I am just curious as to how far this will go, clearly there is little trading activity at these new prices and those walls propping up the price if they dissapeared we would find ourselves at 120 again in no time flat.

Just curious if I'm reading this wrong and this is actually huge demand / paradigm shift.  To me it seems like a giant bet on which way the whales will go next.

I think there will be a big jump if the conflict gets worse.. i might be wrong though.

Yeah, I know, right? Totally artifical (as you said a day or so ago). We should just irgnore it and buy coins at lower prices.

LOL - I thought you meant he was extra spicey...

What will happen if US starts the proxy war against Russia & China?

Big movement but in what direction. Some possible implications?:

Possible gold & bitcoin running up?
Possible massive selloff of $ by the chinese state?
ASICMINER (China) consequences for western customers?
BTC-e consequences for western customers?
Bitstamp & MtGox consequences for Russia & China customers?

Huge movements i guess.

Any opinions?

Yeah, this whale driven price trend sucks.

I disagree on the confidence level, I don't see it in the market right now.
On the 19th there was a large rise and then quickly a large fall in the bid sum / ask sum ratio, and yet
the panic buyers kept the price from dropping significantly. Now the ratio hasn't dropped much, but I
don't see significant panic buyer activity ( well, not yet ). Seller pressure is still high right now.
Regarding the bid sum / ask sum ratio, it's important to note that a redistribution of the orders can be misleading.

Please forgive such a n00b question.. (but I am a n00b!) --

When i see bid depth like this, quite a bit higher than the ask depth - doesn't this imply the simple priciple of supply and demand.

i.e. -  there is more demand than suppply... ergo, price will rise??

At least that is what i assume, please correct me if i am wrong, and a quick / simple explanation too if possible,

(I admit to eing a n00b, i admit i know very littel, but i also want to learn)
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Yes and no.

While the law of supply and demand is certainly the driver behind the Bitcoin price, you have to also consider that a lot of people don't have their coins or USD on the exchange right now and that graph only represents people who have staked their position.

What really changes the price of Bitcoin in these early days are the whales (large BTC holders/wealthy individuals). Once you think you know where things are going, a huge whale will splash in out of nowhere and change everything.

Just look at this recent run-up. Nothing on that graph indicated it, and all that happened was some whale came in and bought up a ton of coins out of nowhere.

Right now the Bid depth does indicate buying pressure and thus a higher price, but there could be someone just waiting to put in a massive sell order, changing the whole game. I find this unlikely though, because the (so far) positive talks with US regulators is a HUGE step in the right direction and brings a lot of confidence.
[/quote]

Cool, thanks for the explanation. At least my fundamentals were nearly right.

I have witnssed the large buys of this week, and 1+1=2 jumped to the conclusion that as a result of these positive meetings on Capitol hill, then someone felt confident enough to make a buy.
However, this may not be the case. It could have been someone ith a large $$ reserve on Gox waiting in the wings, and decided to co.incide their buy if a good outcome was reached by those meetings. (think about it, they couldn't have been at the meeting and 2 hours later hav $1M sitting on Gox ready to buy.. how could that happen?)
So, it was more likely someone that had reserves sitting there waiting for the right time.. Coujld it of been an attempt to drive the price up on the back of confidence coming from hese meetings? That's my hunch anyway.
Probably trying to move the price up before dumping large reserves of BTC at their desired price. Pump and dump.. except it hasn't worked.
But we seem to be more or less stable around $130 (95-96 EUR)
In short, who the hell knows whats going to happen next? but i totally find this all very intruiging.
I'm not a day trader by any means.. I'm buy and hold long. So short term flutuations don't annoy me, but thy definitely interest me.

Yes and no.

While the law of supply and demand is certainly the driver behind the Bitcoin price, you have to also consider that a lot of people don't have their coins or USD on the exchange right now and that graph only represents people who have staked their position.

What really changes the price of Bitcoin in these early days are the whales (large BTC holders/wealthy individuals). Once you think you know where things are going, a huge whale will splash in out of nowhere and change everything.

Just look at this recent run-up. Nothing on that graph indicated it, and all that happened was some whale came in and bought up a ton of coins out of nowhere.

Right now the Bid depth does indicate buying pressure and thus a higher price, but there could be someone just waiting to put in a massive sell order, changing the whole game. I find this unlikely though, because the (so far) positive talks with US regulators is a HUGE step in the right direction and brings a lot of confidence.

Please forgive such a n00b question.. (but I am a n00b!) --

When i see bid depth like this, quite a bit higher than the ask depth - doesn't this imply the simple priciple of supply and demand.

i.e. -  there is more demand than suppply... ergo, price will rise??

At least that is what i assume, please correct me if i am wrong, and a quick / simple explanation too if possible,

(I admit to eing a n00b, i admit i know very littel, but i also want to learn)

It could take until Sunday again....

yes.