Forgive me as this is going to be a bit vague, and I'm fairly new - but trying to understand the divergence between Bitstamp and MtGox it occurred to me that maybe the "history" of the market movers on each Exchange is different and that may explain the gap.
Specifically - I seem to remember comments a few months ago about a big lump of coins that ended up in Gox at a particular price (can't remember if it was $130 or $180) because of some event - and they were sitting on the ask side waiting for the market to recover as we dropped to $60 ish in July. i can't remember the event, but it was a shit load of coins.
Is it possible that if you're a really major player - and you understand how to move the market but arrived in a losing position for some reason - that you sell out at a loss - wait - and then play back in, in a structured way, to boost the price back to a level where you can make profit (even if you can't get it out of the Exchange)? It doesn't matter if you can't take it out as long as you can sell at your entry point, because selling will crash the price which would enable you to buy back in, and then exit Gox to exchanges that are more functional?
So what I'm saying is players on Gox are trying to reach a price - whereas traders on Bitstamp are trying to find it?
Specifically - I seem to remember comments a few months ago about a big lump of coins that ended up in Gox at a particular price (can't remember if it was $130 or $180) because of some event - and they were sitting on the ask side waiting for the market to recover as we dropped to $60 ish in July. i can't remember the event, but it was a shit load of coins.
Is it possible that if you're a really major player - and you understand how to move the market but arrived in a losing position for some reason - that you sell out at a loss - wait - and then play back in, in a structured way, to boost the price back to a level where you can make profit (even if you can't get it out of the Exchange)? It doesn't matter if you can't take it out as long as you can sell at your entry point, because selling will crash the price which would enable you to buy back in, and then exit Gox to exchanges that are more functional?
So what I'm saying is players on Gox are trying to reach a price - whereas traders on Bitstamp are trying to find it?
Huge market manipulation is evident, in my opinion, but the game evolves, there are those who have hundreds of thousands of coins, and those who have thousands and hundreds.
Manipulating the market requires effort, and long deep pockets. Those who have the ability to do it have more at stake than just making money, and predicting there moves is a gamble.
Everything that happens here makes Bitcoin more resilient and stronger, so it's best to just go about ones business and ignore the conspiracies.
Sure - it's just there's been some enormous buys that people seem to have taken as irrational and against the TA, and I wonder if the reason for that is that we have no idea about their motive. Day traders obviously try to reconcile on short time-scales, if big players are in the market at a loss (and particularly if they have additional reserves) and are trying to reach a price, it's probably worth trying to work out what that price is.
