Topic: Warning: How many of you Bears have ever been a victim of a Short Squeeze? - page 26. (Read 43772 times)

absolutely.  this is the residua of years of inflation with USD's and leverage floating around everywhere unfettered.  all it takes is just a wee bit of this to flow into Bitcoin and we will exceed the previous highs.

I find it so amazing that the bears refuse to recognize that. There are probably a Million of  investors with sufficient funds to squash them without the effort really showing in their bank account.

the move out of US Treasuries is a game changer.  everyone knows the biggest debtor of all, the US of A can never pay back its debts.  if you look at the daily price chart of TLT its done a perfect double top after a huge run up in anticipation of Operation Twist.  it was a headfake and now all that money from the biggest bond bubble in history is flowing out looking for risk on plays, mainly in equities.  the US Treasury market is the largest on earth and the biggest in history, dwarfing the stock market.  alot of these USD's will go into currencies.

hedge funds, professional investors, banks all look at the potential investments on the table; stocks, bonds, commods, oil, gold/silver, miners, Bitcoin.  investors usually ask themselves whats overpriced, underpriced, cheap, expensive, overbought, oversold, etc.

i can easily see professional investors looking over the table:

Q:  whats this over here, Bitcoin?  i thought it was done?

A:  no, still hanging around.

Q:  didn't it get hacked?

A:  the exchange did but the source code didn't.

Q:  is Gavin still around?

A:  yes.

Q:  how about those other guys, Stefan Thomas, Amir Taaki, and Jeff Garzik?

A:  they're still there too.

Q:  God, i thought they would've given up by now if Bitcoin really was a ponzi.

A:  nope.

Q:  any improvements in security?

A:  tons.  consumers are now protected by encryption and mtgox hasn't suffered another attack.

Q:  really?  how much is it now?

A:  $2

Q:  you're kidding.  didn't you say it acts like gold?  a limited supply?

A:  yes

Q:  well, our gold/silver plays aren't doing so well.

A:  lets pour a few million into Bitcoin.  its oversold and maybe we can get a short squeeze going.

I think ppl are just getting out of bonds other than German and into stock and German bonds. What would you do as a Greek? Leave your money to the Greek govt to forcibly convert it to Drachme?

How long is this going to go on?  Do you believe in the European plan?  I am asking honestly - probably nobody believes the plan, but still the market rallies.

  Well, I can't speak for anyones sanity, including my own most of the time. I can say that I have only used Bitcoin as currency. And will continue to do so no matter what the exchange price is as long as it holds 'value' to a buyer and a seller. And am sure i'm not alone....

I see bitcoin going as low as $0.05-$0.10 per coin before it finally wipes out weirdos like you Cypher.  The concept of bitcoin is great, but its implementation is terrible and nobody is using it as a currency.  It's bound to lose virtually all of its value.

Cypherdoc, you nailed it.  Short squeeze in progress.  Body parts strewn everywhere. 

It's coming 

  RISK ON


  Its like the 'Game On' mantra but for investors? ;p

I seriously doubt enough people will be attracted to bitcoin to sustain any kind of a rally, not to say anything of reaching new highs (or even $5, and certainly not $10 again), now that the project has been sufficiently humiliated.  It's just not going to happen.

just to reiterate and update Fridays action in the REAL economy of stocks, commods, and bonds which i'm sure most of you here don't follow as closely as i do:

1.  stocks rallied big and broke up and out of a bear flag and look to rally for months.
2.  US Treasury bonds continue to be sold off unleashing HUGES sums of USD's looking for a new home.
3.  commodities like oil, gold, silver, and miners took off as well.
4.  the USD took a big dump meaning leverage has returned to the markets in general.  IOW, speculators are borrowing or shorting USD's to bid up investments of all kinds.

what professionals call this is the return of RISK ON.  which means all speculative investments like Bitcoin go back on the table and are targets of speculative froth.  its not surprising to me that we're seeing this 50% rally right now.  it makes total sense.  if you believe in Bitcoin, you should buy it now b/c there are plenty of others right behind you.  and they don't just come from the smallish Bitcoin community that we have here and that most of you assume are the only players in this space.

that huge bid wall thats following the price up is REAL.

I agree with you, at some point it simply turns completely irrational. Fundamentally, I believe this point has been reached.

Or perhaps someone might explain to me why people in October, after all publicity we have had, new infrastructure, new businesses, new development (hell, we even have Gavin working fulltime now) etc., should be able to purchase Bitcoins cheaper than the guys in April?

yes, how unfortunate.

it also depends on the number and size of the sellers/shorters.  i think the selling/shorting pressure has dissipated.  theres only so far the price can fall before the fundamentals of Bitcoin reassert themselves and deep down the Bears know it.

Referring to your OP:


The thing with the downtrend we had since June is that it’s been a slow, sustained bleeding. It reflects the permabullish mentality many here share, always buying back the Bitcoins. I don’t know if this trend is going to be broken; it’ll depend on how big the core of true Bitcoin supporters is.

i don't get what you're saying.  i've never thought its been a bubble which is why i've never sold a Bitcoin, just accumulated on the way down (too soon yes).  but thats ok as i believe the longterm fundamental equilibrium price is way higher than 32.

Yeah, I just saw we touched 3, and a HUGE ask-wall came up, and it's being whittled away

Sounds exactly like what we bulls experienced in June, but now even you admit it’s been a bubble?

Anyway, it’s not like I’m not enjoying this. Let’s see if we can reclaim this long-term trendline!

Breaking 3 atm. The last time we broke 3, we went parabolic to 32$.

what the kid shorts dealing in a penny stock like instrument such as Bitcoin don't realize is that the upside price ramp potential is infinite while the downside profit potential is limited from here to zero.  with all of Bitcoins potential and its inability to be hacked, the bulls have so much more to gain and take perverse joy in killing shorts for blood sport.

it starts off slow, with plenty of downside retraces to lure the shorts back in.  the price ramps are short but vicious destroying small pockets quickly.  Zhoutong will assist greatly in this by liquidating his shorts to protect himself, much to the chagrin and anger of his acct holders.  the shorts that have made lots of money in the past refuse to believe whats happening and imperceptibly don't notice their green balances being whittled away.  arrogance sets in, like this guy Nagle, but pretty soon those green balances turn red.

denial turns to anger turns to arrogance turns to fear turns to capitulation.  the psychology is wonderful to watch.