Fiat is pouring out from Gox's order book. Bears are better equipped for the next assault to $125.
It's crucial for the bulls to win that battle. If they win it for the second time the battlefield will be full of bear corpses, and they won't dare to try to take that spot again.
If they make it fall... Well, we will see much cheaper coins (below $120), and a mid term downtrend would be expected.
It's crucial for the bulls to win that battle. If they win it for the second time the battlefield will be full of bear corpses, and they won't dare to try to take that spot again.
If they make it fall... Well, we will see much cheaper coins (below $120), and a mid term downtrend would be expected.
I disagree, $125 is not important, $120 has much stronger support and is the real line bulls have to defend. And even if it breaks I don't expect a mid term downtrend to form, just a retreat to former stable values in the 105-120 range.
Have to defend? Or just let it fall through $120 and get cheaper coins?
No one should be propping up the price because they consider themself a bull. If we start sliding down to $120, pull your bids. Buy at $100-$115. You now have more coins and in a week no one remembers that we lost "$120 support". The bulls vs bears is a cute storyline we use to pass time. There's only one thing that matters and that's making money. When BTC is sliding, pull your bids. It's okay, you won't cause irrevocable damage to the market/exchange/bitcoin. Wait for it to bottom out and buy back in. We've lost a "support level/line" at every dollar from $1 to $200. Do you remember when we lost $150? Do you remember when we lost $90? Do you remember when we lost $2? Of course not, it doesn't matter (I do however remember losing $2 - lol).
People will say that by doing that, you increase volitilty, hurting the percption of BTC and costing yourself money in the long run. On the other hand by making "$120 support" a big deal, it becomes a big deal if it goes below. Suddenly that MEANS something. Falling to $118 instead of stopping at $120 won't forever haunt Bitcoin. The "major battle at $120" will be forgotten as soon as someone posts a funny gif.
Bitcoin isn't fragile. Investors psyche? Maybe. But that's why we should stop with the overdramatization of fairly minor market swings. Instead of being at $133 we're at $128 because someone dumped a bunch of BTC in a short span. I missed the part where I should suddenly reexamine the fundamental value of Bitcoins. I missed the part where the future of Bitcoin is going to be decided today on MtGox. It's suddenly do or die?
Buy Bitcoins at the lowest price you can get. Don't support a price point. There is no war. It's a very normal market, doing what markets do, any panic tied to $125 or $120 is something you're creating yourself, it's not real.
+1 Economics and markets are driven by self-interest and optimization on a personal, local scale.
