I agree with most of things already stated but somehow I do not like this prolonged period of stagnation. I agree this is great as a sign of market stabilization but what I do not understand is how it is possible that the price stays at the same level when we see lots of new users/miners/investors every day, creating additional demand for BTC. We all know that the quantity of BTC supplied to the market is more less the same since difficulty has been adjusting constantly to accommodate this. So, we have been having 140ish BTC added to the market every hour and the supply constantly goes up, why is the price stagnant? Why do I have a feeling someone has been dumping BTC for a long time, thus suppressing the price. Gox anyone?
You mean 150 BTC per hour is added. This means, at the current rate, around 60k per hour. If there's not more than that being invested, the price will go down or stay equal.
A lot more money is still waiting to buy or it's on the way to do so. All the big companies will move in sooner or later but they need to go through their bureaucratic meetings and licenses first. Some big funds have bought on the top at US$1,000, one of the reasons it stayed up there quite some time.
I think a lot of big investors are already stocking up. They are just doing it smart, which is to take it slow so as to not ramp up the prices while buying. I'm positive there are major investors that already have tens of thousands and are waiting for the price to go up.
My question is..... how long can prices remain deflated before long term holders that are under water, including large miners that continue to mine at a loss, begin to liquidate their holdings? Are we guaranteed a fat price rice befgore then?
That's a hard one to answer, because I think a lot of people are going to jump ship at the 1k mark (like we saw last year). Basically I see it as being like a wave. We'll hit ATH, people will jump ship and lower the price. It will climb back up, hopefully past the ATH the next time, and the cycle will continue.
Many of us expected that people would "jump ship" when the price reached the $266 ATH in November. Some people sold at that that price, of course, but then the price continued to climb up to over $1000. I wouldn't really be that concerned. It might bounce around $1000 for a day or so but it won't stay at that price long I believe.
There's a massive difference between $266 and $1k though. That's like saying that because it pushes through to $2k, people wouldn't jump ship at $10 million. Major differences there.
In any case, I have no doubt that the price will continue to climb. It's just going to create waves while it happens.
There was a "massive difference" for each ATH. It is all about the adoption rate and the number of people involved now. If we look strictly at the math then there should be no problem getting to 2K on the next run. It would be a pitiful run if it doesn't and the weakest Bubble in Bitcoin's history if the peak was only at 2K from where it is now.
One must keep in mind the volume profile. How many bought at 700-1100? How many of those will be jumping at the chance to get out at breakeven or profit? How did this differ from 266?
