As summer draws to a close, the hope among traders is that the sell off in the bitcoin market is also coming to an end. The bitcoin price is up over 6% over the last few days, a welcomed increase following a tumultuous three-week period. Given the recent price jump, a pullback may be on the horizon over the next week.
Bitcoin by the Numbers
Bitcoin Price Recap
The bitcoin price has been surging over the last few days, rising over 6%. This recent price movement has broken a two-week period of price stagnancy and has provided traders with positive momentum heading into the final four months of the year.
No direct catalysts can be linked to this recent price push. The majority of the buying activity occurred over Labor Day weekend driven by Asia and Chinese traders in particular. This left many US traders flat-footed.
The price increase is welcomed by market participants who are still licking their wounds from a three-week period which saw the market bottom out in the $160 range. Some traders may also see this recent price jump as an opportunity to casually take gains of up to 50% off the table.
Bitcoin Trading Week Ahead
This week is a pivotal time for the market as many traders believe a natural pullback is likely given the price of bitcoin is approaching its historical 30-day high. Light exchange volume figures and a lack of publicly available data around USD/BTC swaps fuel the assumption that market participants are undecided as to which direction to take on price. Most traders will be treading lightly as the market looks to continue to build support at $240 and resistance at $250.
Best Bits from Last Week
- Coindesk: Bitcoin Exchange itBit Hires NYDFS Lawyer for Compliance Role
- American Banker: Why Digital Currency Crackdowns Benefit Banks
- Nasdaq: Gold and Bitcoin Could be the Beneficiaries of China's Woes
- WSJ: UBS Building Virtual Coin For Mainstream Banking
Bobby Cho is the Director of Trading at itBit and leads our Global OTC Agency Trading Desk. Previously, Bobby was Vice President of Trading at SecondMarket where he helped create the first broker-dealer based institutional bitcoin trading desk. He has extensive experience in both bitcoin and securities trading with clientele ranging from Fortune 500 companies, hedge funds, asset managers and other financial institutions.
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*All data and references are current as of 9:00AM EST on 9/8/2015.