The recent bitcoin bull run reached its apex last week, peaking at a 2015 high of $500 on Wednesday. The bitcoin market cooled off over the second half of the week, experiencing a 25% sell-off that brought the price back under $400 to close the week. Expect a quieter week ahead with prices bouncing between $365-$390.
Bitcoin Price Recap
There are no definitive explanations as to why the price dropped so significantly after touching $500. A fair assumption would be profit-taking by long-term bitcoin holders who have been mostly underwater for the better part of the past 12-18 months. Many of these traders may have believed that the market was overbought and looked to hit bids at year-to-date highs.
Bitcoin by the Numbers
Bitcoin Trading Week Ahead
Prices bounced between $365-$390 over the latter half of last week and traders should expect more of the same this week. Given the recent rash of violent price movements and the completion of the final USMS auction, traders will welcome a quiet week with further price and volume consolidation to plot their next moves.
Unfortunately, most technicals have been thrown out the window over the past week. However, long term support can be found at $355 with resistance at $400.
Best Bits from Last Week
- Fortune: What Do MasterCard and Visa Think About Bitcoin?
- Bloomberg: An ETF That Invested in Bitcoin Has Been Having a Nice Few Weeks
- Coindesk: Payments Giant Worldpay is Quietly Supporting Bitcoin
- Bitcoin Magazine: Wall Street OTC Bitcoin Trading Desks See Record Volumes as Price Hits 52-week Highs
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*All data and references are current as of 9:00AM EST on 11/9/2015.