Bitcoin (BTC) has gained $1200 in 24 hours March 12 as markets shake off the weekend’s slump below $8500. Data from major exchanges including Bitstamp, Coinbase and Bitfinex put BTC/USD at around four-day highs of $9810.
The uptick, which amounts to a price increase of 15.5% since Saturday, continues Bitcoin’s pattern of behavior traders have seen since February. Moves upwards and downwards between around $11,800 and $8500 – with one exception of a brief drop to $5900 – have defined BTC/USD in recent weeks.
Analysts had predicted that further sustained upside would be possible only if markets cleared significant resistance around $12,000 and closed above $12,400.
News last week that Mt. Gox trustees were selling huge amounts of Bitcoin to reimburse creditors altered the outlook, however, as it emerged each sale had triggered price decreases across international markets. The stock of coins is not yet fully sold, with the prospect of further repeated fluctuations on the horizon. Within the cryptocurrency industry, however, bullish sentiment remains strong.
Fundstrat Global Advisors’ Tom Lee, himself well known for championing Bitcoin, unveiled a ‘Bitcoin Misery Index’ March 9, a tool which flashed a ‘buy’ signal to markets and swiftly saw the start of the 15.5% climb. Talking about the Mt. Gox issue, Lee was relaxed and urged calm.
“It’s a short-term concern, but it doesn’t change anything,” he told Barron’s the day of the release.