ALERT: Bitcoin Crashes 60% in one day after setting another record.

Volatility reigns and the top is now likely in for Bitcoin after crashing 60% yesterday from $265 down to $105 before sharply rebounding. It is last in the $160 area. The first drop should be "A" of an "ABC" decline (down-up-down) that ought to take the cyber currency well under $100 (somewhere in the $50+ to $90- area). There is an alternate elliott wave count that what we saw was the top of W3 and that after a major correction (W4) that we ought to see another leg up (W5) that should attempt to make a higher high. However if we had a truncated W4 in the $120-150 area then the blow off top was it.

silverdoctors.com...

reply to post by CosmicCitizen


But, but, but....Bitcoin was supposed to be immune to problems like this as such an extraordinary alternative to the dollar.

I can't help but feel sorry for those that got in on Bitcoins. Hopefully some of them were slick enough to realize the price was inflated and exit their positions in time.

Originally posted by CosmicCitizen
Volatility reigns and the top is now likely in for Bitcoin after crashing 60% yesterday from $265 down to $105 before sharply rebounding. It is last in the $160 area. The first drop should be "A" of an "ABC" decline (down-up-down) that ought to take the cyber currency well under $100 (somewhere in the $50+ to $90- area). There is an alternate elliott wave count that what we saw was the top of W3 and that after a major correction (W4) that we ought to see another leg up (W5) that should attempt to make a higher high. However if we had a truncated W4 in the $120-150 area then the blow off top was it.

silverdoctors.com...

My hat off to you for that writeup. It was impressive.

reply to post by CosmicCitizen


The MSM was talking about bitcoins the other day - just seems to me like another casino they're running - like the stock market. House always wins.

reply to post by Ameilia

I can't help but feel sorry for those that got in on Bitcoins. Hopefully some of them were slick enough to realize the price was inflated and exit their positions in time.

lol... the price is still sitting around $180 per BTC right now, you don't need to feel sorry for anyone.

There was no reason it should have shot up to $260, the so called "crash" was simply a predictable correction to counter that sharp rise and bring it back to where it wanted to be.

Originally posted by ChaoticOrder
reply to post by Ameilia

 

I can't help but feel sorry for those that got in on Bitcoins. Hopefully some of them were slick enough to realize the price was inflated and exit their positions in time.

lol... the price is still sitting around $180 per BTC right now, you don't need to feel sorry for anyone.

There was no reason it should have shot up to $260, the so called "crash" was simply a predictable correction to counter that sharp rise and bring it back to where it wanted to be.

edit on 11/4/2013 by ChaoticOrder because: (no reason given)

But I do, and here is why:

The Tokyo-based exchange said last week that hackers are engaging in a strategy to manipulate the price of the currency: “Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.”

Because whatever a person bought it at, they are still vulnerable to hacking. I see this as the same as the USA stock market being manipulated. A no-win for the little guys (average people).

TechCrunch

Originally posted by Ameilia
reply to post by CosmicCitizen

 

But, but, but....Bitcoin was supposed to be immune to problems like this as such an extraordinary alternative to the dollar.

I can't help but feel sorry for those that got in on Bitcoins. Hopefully some of them were slick enough to realize the price was inflated and exit their positions in time.

Just like any commodity it hit it's resistance and people started selling to cash out on it. This is how securities work (although bitcoin is not necessarily a security or commodity.)

You don't need to feel sorry for anyone - those of us who are smart made money. Those who bought at higher prices would be smart to hold their bitcoins for awhile until they can either make their money back or profit.

It's just the nature of markets.

Originally posted by Ameilia

Originally posted by ChaoticOrder
reply to post by Ameilia

 

I can't help but feel sorry for those that got in on Bitcoins. Hopefully some of them were slick enough to realize the price was inflated and exit their positions in time.

lol... the price is still sitting around $180 per BTC right now, you don't need to feel sorry for anyone.

There was no reason it should have shot up to $260, the so called "crash" was simply a predictable correction to counter that sharp rise and bring it back to where it wanted to be.

edit on 11/4/2013 by ChaoticOrder because: (no reason given)

But I do, and here is why:

The Tokyo-based exchange said last week that hackers are engaging in a strategy to manipulate the price of the currency: “Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.”

Because whatever a person bought it at, they are still vulnerable to hacking. I see this as the same as the USA stock market being manipulated. A no-win for the little guys (average people).

TechCrunch

You cannot hack the bitcoin system. You can hack someone's personal computer, but if they have encrypted their wallet and keep backups in seperate locations it's safe.

You should do some research into how bitcoin actually works and stop just reading what ignorant people write on the internet.

If someone is gaming the system and increasing value artificially, you can profit from that too. You just have to set and stick to limits.

Originally posted by TinkerHaus

Originally posted by Ameilia

Originally posted by ChaoticOrder
reply to post by Ameilia

 

I can't help but feel sorry for those that got in on Bitcoins. Hopefully some of them were slick enough to realize the price was inflated and exit their positions in time.

lol... the price is still sitting around $180 per BTC right now, you don't need to feel sorry for anyone.

There was no reason it should have shot up to $260, the so called "crash" was simply a predictable correction to counter that sharp rise and bring it back to where it wanted to be.

edit on 11/4/2013 by ChaoticOrder because: (no reason given)

But I do, and here is why:

The Tokyo-based exchange said last week that hackers are engaging in a strategy to manipulate the price of the currency: “Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.”

Because whatever a person bought it at, they are still vulnerable to hacking. I see this as the same as the USA stock market being manipulated. A no-win for the little guys (average people).

TechCrunch

You cannot hack the bitcoin system. You can hack someone's personal computer, but if they have encrypted their wallet and keep backups in seperate locations it's safe.

You should do some research into how bitcoin actually works and stop just reading what ignorant people write on the internet.

If someone is gaming the system and increasing value artificially, you can profit from that too. You just have to set and stick to limits.

edit on 11-4-2013 by TinkerHaus because: (no reason given)

If you think Bitcoins are safe from stuff like this, and all sources reporting they aren't are wrong, I won't be able to change your mind.

Denial of service attacks happen. This is an indisputable fact.

reply to post by TinkerHaus


Nice edit.

I see what you did there, first denying that Bitcoins were vulnerable to attacks, then going back to edit your post and say that since they are vulnerable, that's okay too as long as you can make a profit.

You should have just admitted you were incorrect, instead of trying to be sly with the edits.

reply to post by Ameilia

“Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.”

This is not "hacking" or an "attack"... this is called currency trading on a free market. Only idiots buy at a high price and then panic sell and lose money. If they do that it's their own fault. They should hold onto the bitcoins instead of panicking. This same thing will happen on any open market, the bitcoin market simply makes it easier to do this because the price is highly volatile due to the newness and novelty of bitcoin, along with the fact any man and his dog can participate in the market very easily. It has nothing to do with hacking, the last time Mt. Gox was hacked was a fair while ago now and they have recovered from it well.

EDIT: and it should be noted that the security of 3rd party exchange like Mt. Gox has nothing to do with the bitcoin network. The bitcoin network its self has never been hacked.

reply to post by Ameilia


Sure they happen, just like they could happen to any investment bank out there. The bitcoin itself is secure, and the manner in which bitcoins are created and recorded is so redundant that it's literally more honest than how the USD is created.

Real securities are manipulated too - so if you're saying that bitcoin is vulnerable to the same strategies used in securities and forex markets I agree with you.

Originally posted by ChaoticOrder
reply to post by Ameilia

 

“Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.”

This is not "hacking" or an "attack"... this is called currency trading on a free market. Only idiots buy at a high price and then panic sell and lose money. If they do that it's their own fault. They should hold onto the bitcoins instead of panicking. This same thing will happen on any open market, the bitcoin market simply makes it easier to do this because the price is highly volatile due to the newness and novelty of bitcoin, along with the fact any man and his dog can participate in the market very easily. It has nothing to do with hacking, the last time Mt. Gox was hacked was a fair while ago now and they have recovered from it well.

Actually, YES, it is an attack.

US-Cert

What is a denial-of-service (DoS) attack? In a denial-of-service (DoS) attack, an attacker attempts to prevent legitimate users from accessing information or services. By targeting your computer and its network connection, or the computers and network of the sites you are trying to use, an attacker may be able to prevent you from accessing email, websites, online accounts (banking, etc.), or other services that rely on the affected computer.

Note the keyword there, "attack."

Now run and edit your posts.

reply to post by Ameilia


lol what does anything you described have to do with a DDoS attack? A DDoS attack may slow down Mt. Gox or take it offline but that's a far stretch from "hacking" Mt. Gox. If that were the case you could say the DDoS attacks on ATS these last fews days were "hacks"... but they aren't, they are a stupid trick pulled by script kiddies who think it's cool.

reply to post by CosmicCitizen
Bitcoin and crypto currency financial logic is different. It will recover just as fast. find a new floor then continue on. Even with Day trading that's just the trend so far.

News of a crash always comes out as BTC recovers lol . Digital currency flows faster.

Originally posted by ChaoticOrder
reply to post by Ameilia

 

lol what does anything you described have to do with a DDoS attack? A DDoS attack may slow down Mt. Gox or take it offline but that's a far stretch from "hacking" Mt. Gox. If that were the case you could say the DDoS attacks on ATS these last fews days were "hacks"... but they aren't, they are a stupid trick pulled by script kiddies who think it's cool.

I guess you failed to read my source. Maybe if you go read that article, you'll understand where I'm coming from, even if you disagree, and we can quit arguing about nothing in the middle of the night.

How does doing a DDOS allow them to 'buy and sell' unfairly ?
Wouldn't a DDOS take the site down and make it difficult for even the hackers to access?

This doesn't look like hacks or attacks to me.
I guess I am missing a lot of the info or something?
It actually looks like normal market activity from what I am reading here...Our system is just really volatile and can fluctuate drastically in fast time frames.

reply to post by Ameilia


Ok so somehow they are using the lag from Mt. Gox to their advantage... however it's obvious the advantage they could get from that is extremely limited, and the people carrying out the DDoS attack will need to deal with the lag they cause. And it's not like there aren't any other bitcoin exchanges, there are plenty. If Mt. Gox was lagging why would I panic and sell or something like that? I'd just go to another exchange or wait until Mt. Gox had better speeds. Personally I've never once experienced very slow speeds of Mt. Gox, and I visit it at least a few times a week.

EDIT: and I also fail to see how this exact same problem wouldn't apply to other currency exchanges.
PS - what makes you think it's the middle of the night where I am?

reply to post by Ameilia


So, the bitcoin is like a stock, but it's better than a stock - because it only exists on the internet?

So, if someone hacks your account, or states that bitcoins no longer exist - ?

How exactly do you take supposedly real money (I know it only exists because someone puts a value on it) and trade the "money" for a bitcoin, or two?

reply to post by Happy1


They don't hack your account they steal your wallet file, and your out of what ever you had.