Bitcoin market activity over the past week has been reminiscent of the 2013 bull run. The price of bitcoin was up an astonishing 20%, backed by plenty of positive mainstream momentum. This week, the market will look to trend higher ahead of the final USMS auction which will wrap on Friday.
Bitcoin Price Recap
The bitcoin market has shown no sign of letting up following a big week and this resilience was on full display over the weekend. Following an 8% price drop on Saturday, the market shot to new highs by Monday morning, eclipsing $340 USD. Volatility is back and this is a welcome sign for market makers as they have endured months of stagnant price action waiting for a break out.
Traders and analysts have pointed to a number of different potential catalysts for the accelerated bitcoin bull run over the past week. These include increasing capital controls in China, positive mainstream news coverage of blockchain which helps build Bitcoin’s long-term value propositions and increasing interest in bitcoin as a speculative asset.
One potential negative story to keep an eye on are allegations of possible market manipulation tied to Bitcoin ponzi schemes in China which may be helping to inflate both volumes and prices.
Bitcoin by the Numbers
Bitcoin Trading Week Ahead
With the final USMS auction looming in the second half of the trading week, positive price movements may be more subdued as the market looks for the auctioned bitcoins to clear. Traders should also monitor China trading volumes to see if they will continue to sustain their blistering pace.
Support and resistance continue to widen as volatility has forced technical traders to create deeper levels. Support is set at $328 this week while resistance can be found at $360.
Best Bits from Last Week
- Economist: The Trust Machine
- Forbes: Nasdaq Unveils Blockchain-Enabled Platform Linq, Announces 6 Inaugural Clients
- Reuters: Bitcoin firm raises funding from Bain, New York Life, MasterCard
- Coindesk: Visa Debuts Bitcoin Proof-of-Concept for Car Leasing
Try itBit’s Global OTC Agency Trading Desk and Receive $50
Trading over 100 bitcoins? Receive $50 in bitcoin when you complete your first OTC trade with itBit!
Personalized Trading Support | No Broker or Trading Fees | Same-Day Settlement
*All data and references are current as of 9:00AM EST on 11/2/2015.