In early June, Bitcoin traded as low as USD$223, then it started pushing its way upward. By mid July, the price hit USD$309, a rise of over 38% in around 6 weeks. During this time, we wrote a post explaining why we believed There was a Storm Brewing for Bitcoin. It was our opinion that the Bitcoin market was about to make a large price movement. The question was would it go up or down?
Shortly after peaking at USD$309, Bitcoin dropped back to USD$275, and has been hovering around this level ever since. The price has gone up but it's hardly the big price movement we were expecting 6 weeks ago. While there is potential for a large price movement, the market continues to drift sideways. The Bitcoin market, has not gained any momentum because it has no direction. The USD/BTC price movement over the last month is shown below:
What Will Get Bitcoin Moving Again?
Bitcoin has spent most of 2015 between USD$225 and USD$300. This is quite a contrast to the volatile price moves bitcoin traders experienced through 2014. In our previous post, we noted that volume and volatility were both below average for Bitcoin. We thought it was a sign that the market was ready to move. Perhaps we should have said 'the market was waiting to move' The Bitcoin market is still waiting to move.
A significant event will trigger a sudden change in the market. Only problem is, we can't predict the future, so we don't know if it will send Bitcoin up beyond $1,200 or down into oblivion. Alternately we could be wrong, and the market could continue to drift and deflate like a balloon.
What Are Your Thoughts?
Tell us what you think, we'd love to hear from you in the comments section. Is Bitcoin about to take off? What do you think will bring traders back into the market? Will they be buying or short selling?