Holy cow! What's causing this rally? Was it MtGox burning up some coins by accident, making us all richer?
In my opinion the rally is simply caused by the fact that after we hit the low of $2.04 the combination of real trade demand and speculative demand wanting "cheap" coins was simply too much for any downward pressure to keep up with. Thus we see the speculative demand increasing because more and more people are thinking that maybe the 2.04 low was the bottom.
It could indeed be that it was the bottom because we are close to the point where this rally can be called a trend-changing one. Not quite there yet but we'll see. A lot of people are still afraid that we're in a bull trap. Even I, known as a long-term bull and optimist, am not all-in, at least not yet.
I have been buying lately and I am buying now like many others but I'm constantly looking for signs of a confirmed reversal, which would most likely change my entire strategy, or signs that this is indeed a massive bull trap. Which would not really change my strategy because I'm still prepared for it.
