Bitcoin Trade Advice (novice friendly) – 25 November, 2013

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I am not very eager to buy bitcoins at the moment.   Though that may change quickly, the reason I am not buying right this moment can be explained by the above picture, which I am going to share with you. This is a screen cap of the “Mt. Gox Live” chart – this type of diagram is sometimes referred to loosely as an “order book.”

The blue line at $900 is known as an “ask wall.”  By reading off the large dollar value at the top – right of the blue line, we can learn that nearly $8.8 million would need to change hands in order for the price of bitcoin to go above $900.  This wall is keeping me from buying any bitcoins right now.

The reason I am choosing not to buy bitcoins while the wall is up at $900 can be understood by comparing the two possibilities below.

1) The price will slowly work its way up to $900, in the near future.

– In the worst case scenario, by not buying, I miss out on the profits for a gain of around ~7% from the current price up to $900

2) The bitcoin price falls today

– In this case I will be happy I did not buy.

While I wait to see where this wall goes, I am actually hoping for the price to fall, so I can use the liquid USD I have available to obtain more bitcoins than I would if I were to buy at the current price.

Donations:

BTC:  17NA1jYg5u6ejboArdM7HW4MwSa6cWfnEd

LTC: LQ1XbTGMiNfL4tQoqA3doVKwUDEuddSpRx

XPM: AejVQ34ntJAwUhebe7GMtC8aQ2oPg4bHDf

PPC: PQzT1tFMB5ECbQPhp41R5cTc7jpbgGUDfb

http://www.phys.ufl.edu/~majewski/

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Posted in Bitcoin, Stuff

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