Quote from: rpietila on May 21, 2014, 09:45:22 PM

Quote from: Carra23 on May 20, 2014, 03:45:23 PM

Quote from: rpietila on May 20, 2014, 05:34:48 AM

My 2H-volume based technical trading algorithm made a call this morning. Switched from BEAR to BULL.

It had been a BEAR since 2014-4-16, at the price of $515.

I think it is about time for the rest of us to switch to bulls also. The risk/reward ratio from being a bear in these circumstances is declining rapidly.

It is possible that the deck was arranged for a dip last weekend (I also noticed it in the charts and warned you). But since nobody panicked, some of the players took action on the greener side.

I tried to send a longer treatise on the possible developments in price yesterday, but since I was on a cruise ship, the internet didn't work properly. I think I'll scrap that one, because of the indicator going long, and good news just cascading on the face of price being -60% below trend. So now I advice to buy for all timeframes from 1 month to long term.

Maybe, but I still think there will be another dip below 400.

^^-- I think we have run out of suckers to accomplish that.

The last moves that totalled 10.5% in 2 days were carried out with a total volume of 32kBTC in Bitstamp. If we assume that the global net demand volume was twice that (very conservative indeed), it means that 64kBTC, which is 0.52% of the bitcoin market cap, was bought with the effect of 10.5% increase in market cap. This is 20:1.

To raise bitcoin price to the level that many dream of, $7000, only $4 billion is needed if the market-cap-increase-leverage is 20:1.

We are talking about 1.7 million bitcoins changing hands during the uptrend. That is 14% of all bitcoins.

According to my research, the average sum a person would invest in bitcoins is $1000. Therefore, 4 million new users are needed in addition to the 1 million current ones to reach $7000.

That seems like a lot to ask for the next 7 months. I think chances are some bigger investment funds are going to have a big impact though.