I can't believe I'm saying this, but in light of this news, I'd say $300 isn't unreasonable. It'll take awhile for the exchanges to flush out all the panic sellers. This could last a few days.
a few days eh?
chinese have to get their money out by jan 30th deadline.
so, I would bet on more like 6 weeks of bitcoin torture? not saying it has to crash every day, but I would expect downward pressure for 6 weeks.
Also it takes a while to arb the exchange rates between exchanges, so the downward pressure will be moved to gox and btc from the chinese exchanges only after days of being at lower prices (like they currently are now).
well, china can´t go down 6 more weeks with this pace. chart cannot turn negative...
yep. 300 is the bottom
yeah I never said crash every day for 6 weeks, I said downward pressure. Some days will be up undoubtedly.
as to the other question as to why people don't sell when something is crashing? its obvious, human psychology works against us, its only a real loss when you sell at a loss. As long as the position is open, you wish and pray for a rebound, or you just pretend the position isnt in the red. Either or.
so that is why people (us, you, me) sometimes hold onto positions into a death spiral instead of selling.