Quote from: flaab on March 11, 2013, 11:13:22 PM

Quote from: Spaceman_Spiff on March 11, 2013, 11:06:33 PM

Yeah, I sold some coins at the previous top and rebought some of them during the subsequent dip, but I am impressed by the rebounce as well. I am finding it hard to adhere to my long-term strategy of selling little bits now and then along the way up, just because it looks so darn bullish (despite the crazy bubblespeed appreciation).

Well, we must take some things into consideration when measuring the rally:

* If someone wants bitcoins, he can A) Mine them or B) Buy them
* Therefore, the price must have a relationship with the network difficulty
* The network difficulty was much smaller in 2011
* The last rally was from 0,3 to 30 before bursting
* The current rally started at 5
* The network difficulty is higher now

So, who knows? The chart says there is still bull strenght, so I'm in again.
http://www.pointzero-trading.com/Blog/view/20

Yeah, I am more of the view that difficulty follows price than the other way around(although obviously a stronger network might persuade people to invest as well if they felt the previous strength was insufficient to provide security).