So, this recent spike in the price of bitcoins was largely caused by one very large purchase. There was a slight rise in price after that, although that was likely due to people covering shorts and overreacting to the artificial spike. Right now, we're seeing very little market activity as people are likely sitting on their coins waiting for another spike.

At first glance I thought that we'd see another rise, less sharp than the first one, but still relatively steep. Looking at it again though, I think that this inflated price we have now is extremely artificial. One large purchase can't truly reflect the supply and demand. I think we'll see the price steadily fall from here, followed by a sharp downturn once people realize how oversold we are. In fact, I think we'll be testing a $4 floor again soon.

Thoughts?