Most runs over the past 12-18 months have stalled out after only a moderate increase in price. One reason for this is the selling pressure created by traders. After a 20% or 40% increase in price most traders sell their positions to buy back lower. This means that every run faces significant selling pressure early in the run, and this selling pressure is what eventually stalls the run.
In this run we are about to break through that selling pressure from traders. Most traders sold part of their positions close to $300 and the rest likely by $350. After that price selling pressure from traders is largely removed. Most of the remaining positions are long term positions. The result is a steady increase in price with larger and larger steps each day.
The previous major runs in 2013 and 2011 behaved like this. Once they broke through the initial levels of resistance where traders exited, those runs then had room for steady and continuous increases.
The current run looks just like this, steady and continuous increases now that we've broken through the ranges where traders sell. Just as I was typing this coinbase just ran through $350 to $358. The traders have largely exited their trading positions, who is left to sell?
note that so far few newspapers have discussed the boom yet. (There have been papers about bitcoin itself, but none of them mentioned current rally yet, they just noted the technology itself)
once newspapers start reporting the boom, people will try to buy more bitcoin, but it will take time before that money hits exchanges, so expect the price to skyrocket a few days after the current boom has hit the newspapers.
after that, it can go really crazy.
