As we alluded to in last week’s Lifting the Offer, growing negative trader sentiment, specifically a lack of confidence in the early-September rally, was a key catalyst for the weekend correction. The bitcoin price was down over 4% for the week but remains up overall in September. This week, all eyes in the bitcoin and global financial markets will be on the Federal Reserve and their decision regarding the US interest rate.
Source: tradeblock.com
Bitcoin by the Numbers
Bitcoin Price Recap
The bitcoin price was relatively stable during the work week with prices fluctuating between $237 and $245 through Friday. However, despite over $40 million of new venture capital investment in Bitcoin companies last week, the price trended lower over the weekend.
On Saturday, the market began to drop with large sellers driving the price down over 3%. The price hit a low of $227 on Sunday matching late-August support levels.
The recent downward movement by the bitcoin market during weekend trading hours have been difficult for the trading community. Many buyers leave little to no dry powder on their accounts for weekend trading, generally closing out positions by Friday.
Bitcoin Trading Week Ahead
We are likely to experience a sideways market this week as the global investment community awaits the Federal Reserve’s decision on a potential US interest rate hike. The FOMC meeting is scheduled for Wednesday and Thursday. An interest rate hike could prove to have a negative impact on bitcoin prices, along with other speculative asset classes.
Support appears to have consolidated at $227 with resistance at $235. Should support break, the market can expect to find the next support level at $220, with even stronger support at $212.
Best Bits from Last Week
- Fast Company: MIT’s Plan to Inspire the Next Generation of Bitcoin Innovators
- Forbes: Wall Street’s First Bitcoin Forays: Buy Or Build
- Bitcoin Magazine: Bitcoin Venture Capital Markets Heating up as Five Bitcoin Startups Raise $45 Million
- Coindesk: Bitcoin-to-Cash App Abra Raises $12 Million Series A
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 9/14/2015.