Short Term Update

There is not much to say, as i said many times it’s hard to forecast the behaviour of few large bitcoin investors, when they decide to sell there is not much support in this tiny market, given the low liquidity (yes,despite mtgox is the biggest exchange i consider it a small market without much liquidity). So far the market is holding above the short term VWAP after a sell off of roughly 35k bitcoins; i think i’m going to close at loss this trade if i see a decisive break of that level (114$).
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9 thoughts on “Short Term Update

  1. krolls

    What could drive such large sell offs for no apparent reason. I think long term talking about years bitcoin will go a lot a lot higher so it’s always an option in my opinion to leave money there

    1. Seph

      I was watching when it happened.
      There was a large 1000 btc sell ask placed when there was little to no buys on the books, so this ate up what little buy orders there were, dropping the price massively. People saw this large drop/sell order and panicked. 10 minutes later when it dropped from 128ish to 119 the (and we can only assume) same person put in a buy order for 6000 (yes, you read that right) btc.
      Obviously a buy wall like that started raising the price. He started buying up all the btc that ppl were panic selling, his massive order started raising the price back up. When ppl saw what was happening they too started buying, driving the price back up, when it hit 129 he sold his position and made a killing, dropping the price back down to 125ish.

      Must be so easy to make money when you have that kind of money -_-

      1. Enky

        Interesting Seph, thanks. Yes probably he managed to earn some $$ but dont forget that high order slippage when playing with 5-10k btcs is detrimental to many strategies, especially in intraday operations.

  2. RichGene

    Just want to point out that tomorrow BTC’s difficulty is about to spike. It’s going to get 27% harder to mine a BTC. This is a huge deal and I’m extremely curious to see what effect this has on the price.

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