This rally will have some legs imo. 800k bitcoins need to be replaced.....
Your assertion does NOT make a lot of sense.
Possibly, a portion of those 800k coins have already been absorbed in the market. And, do you really believe that the various holders of 800k of Bitcoins (who got burnt) are going to replace those coins? Maybe 25% of them will, maybe.... but when would that happen? in the next few weeks?
Exactly!
What was the max ask quantity seen on GOX? 35K, 40K, 50k? Certainly much less than 10% of what was held there. Better still, what was the max FIAT bid? $15M or so? So that's perhaps 25K coins to be rebought, assuming all the cash lost can easily be replaced and the holders would want to reinvest in BTC. More importantly most coins were mined, and mined coins aren't going to be replaced by buying.
There may be good reason for BTC to rise in value, but gox loss replacement isn't one of them. It's simplistic thinking.