As the price declines, it becomes easier for brokers to negotiate lower prices on behalf of their clients to buy bitcoin in large quantities outside the exchanges. We are witnessing a transfer of wealth. The exchanges are so thinly traded that a large institutional trading desk could move the entire bitcoin market. These large corrections have been a part of bitcoin's entire price cycle.
Highly likely. A lot of coins are moving around at or below these prices off exchange. Once this new accumulation has taken place then something like the ETF will be announced or EBAY will directly integrate btc or something and its off to the races. A mania can be whipped up in bitcoin in a few hours of concerted buying. If people think half a billion dollars of VC money is being thrown at bitcoin and noone has thought about the profit potential from actually taking large positions in bitcoin itself then you are in for a surprise.
Edit: though I wish they would hurry up about it..
I honestly don't think more adoption (IE ebay integrating bitcoin) will really help increase bitcoin prices really. I mean without a discount or easy of use or some other benefit there is no reason for people to convert their fiat into bitcoins and then make the purchase in bitcoins. The more merchant adoption will help people spend their coins easier and thus creating a selling pressure due to increased supply on the exchanges.
In order for price to go up we need something different, we need more demand. Demand will only go up if there is some clear benefit to first converting fiat to bitcoin then using bitcoin in transactions, rather than directly using fiat currency.
We need:
1) More quantitative easing
2) Decreased world reserve of USD
3) Increased fiat taxes
4) Need for increased privacy
5) Massive Economic Downturn
6) Country or very large scale adoption (merchants AND consumers)
7) More bankruptcies
8) Failure of banks
9) Speculation -- The least likely to create long lasting results.