My prediction is further exchange rate decreases as they buy the bitcoins that scared sellers sell to them and subsequently move their flypaper bids even lower.
Quite possibly the case. However, I think its quite clear to most people by now that BTC is quite a robust little bugger that has a potential value many times higher than its current rate of exchange, and so owners of the coin are just as happy to sit this out. I doubt BTC value is going to drop anytime soon so I think owners of BTC have nothing to fear and nothing to lose. Of course, this isnt the case for potential issue buyers face playing this game which is new buyers moving into the market and buying up. This of course will raise the price. Then we will see the fence sitters will rush in too to get coins before they go too high, increasing the price even further, and its game on.