Most of you seems to be fixated on idea that Chinese are behind this rally. Well maybe to some point. But I have a another idea - we have a rally because of ...silkroad crash.
What you can read from image bellow?
A lot of folks panic-sold and then price go back to almost original position too fast to go back on BTC train.
Why I know that? Because there's 39k BTC more sold than bought in this event.
I know this also because of orderbook. This is how thing looked before crash:
The bottom was 109.7 and there's 38.5k BTC to go there.
Next important thing is how orderbook looked after crash. Do we need 38k to go there?
No. 7k BTC is just enough.
Third reason I know that because I was one of this suckers who panic sold and don't buy back fast enough (with hope this is just dead cat bounce).
Now we have a situation where suddenly a lot of folks sitting on bunch of USD ...on MtGox. This USD can't be take out from gox without weeks/months of waiting.
"the price will go down and the I will rebuy" ...right
Week later - bears are still asleep. Bulls instead are getting strong (fast going back on track after crash, and again a lot of folks got reminded on bitcoins).
There's no other option.
Folks who sold must buy at higher price:
Then when sell/buy difference since before crash got close to zero we got some top, and rally was over.
(of course panic folks rebought a lot less BTC than they have originally)
Why after that we have another, bigger rally? Well, maybe we have a rally because we have a rally ...