Quote from: sohaib38 on April 20, 2013, 04:31:09 PM

Chartist and technical analysis is not voodoo at all. They predicted what happened with the bubble PERFECTLY. The bubble popped and BTC dropped 85% in about a day or two. Anyway I am surprised that it is back up to 130 now but I think it will probably drift down to $40 or $50 again after another smaller mini bubble or two. I think some new money is still pouring in but we'll see what happens.

Its voodoo-esque. But in trying to capture information from raw numbers on a chart, but to some extent it hides the variables that are actually driving the behavior. It can be easy to lose sight of the fact that its really just an abstraction of people's actions and thoughts on a mass basis.

I recall waiting for a train to come in for boarding and seeing everyone wait to go to the platform. It hadn't announced boarding yet, but as it arrived, and the train was in the process of emptying, a few people shifted a bit, edging forward a bit. Then a bit more increased movement. Then one person went for it and suddenly the whole crowd was moving. I witnessed the same thing after a late-night fire alarm at my apartment--they hadn't cleared our building yet, but suddenly one party headed back in and most other people immediately followed.

Anyway, I think its likely that a number of people are buying as its coming down, and since the market is still relatively small, it doesn't take all that many buy orders to start boosting the price again. But it may take a while for confidence to grow enough again for enough new buy orders to start pouring in to boost the price greatly.