Flashcrash alert.
The rest of the week may be choppy since we are already so much higher than last week. The weekly gains tend to normalize, and I would not be surprised to see Sunday at around 280-300 like we are now.
Retest of previous ATH from the above in the form of flashcrash is probably coming. I don't believe sub-250 territory will be visited edit: except during the flashcrash.
Risk of a change in main trend is low.
Looking forward, it is better to buy now than wait. I would be wary if price goes 600+ in November or 700+ in December, since they may be overextended.
I find myself agreeing with Pietilä, which feels awkward indeed
In my opinion this rally is fueled by:
1) Huge media exposure that led to speculative mania in China (the Feb-April rally was driven by the West; this rally is driven by the Chinese)
2) Big scarcity of coins, created by a) hard decrease in mining profitability (miners are holding like mofo's); b) artificial demand on Gox due to liquidity problems.
These two things combined are taking us to the moon - and I wonder what happens when the western media wakes up to the sound of the new ATH we recently passed
Possible negative factors leading to stagnation/crash:
- Gox going broke. Big investors still have their money there, if Gox goes busto it will be a big hit to the confidence of some whales. Nevertheless, that would slow things down, there will be a little bit of drama, but if safe alternatives come up it will just be a bump on the road.
Possible positive factors leading us to 5 figures and beyond, quickly:
- the SEC approves the Bitcoin ETF
