If the price keeps rising much more that (possible) V formation will be toast
I'm expecting the daily news cycle will kick in around 4 hours hence and the news of the Gox subpoenas will send us back down for a while.
The market is saying Gox closure is bullish. Think Silk Road.
I believe that yesterday's "crash" was caused by that 10 kBTC sale at Bitstamp, not by MtGOX directly, and the current "rally" is just the normal recovery.
The real effect of MtGOX's closure I think, was a gradual decline spread over the last month, and I think that more damage will come gradually over the next months.
The closure of Silk Road had a positive effect since it removed the stigma of "crime coin" that kept many investors away.
On the other hand, I don't see anything positive in the closure of MtGOX. It does not increase the confidence on other exchanges. (If it had been closed by the police, and Mark went to jail, it might have had that effect; but if it just closes and that is it, why shouldn't the other exchanges do the same?)
The headlines that are coming out now say "The largest bitcoin exchange closes and disappears with all their clients' money". There will be thousands of angry MtGOX clients putting up blogs and giving interviews about how they lost everything by investing in bitcoin. That can only scare potential investor again.
Many long-term investors who are not bitcoin enthusiasts probably have not heard of MtGOX's troubles until now. As those news reach them through the media, some of them should sell their coins and leave.
