A big move was in the works following some of the flattest trading activity since 2014, the question being in which direction. After a lackluster few days, prospects did not look promising heading into the weekend.
But bitcoin’s price (BTC/USD) has bucked its recent downtrend, soaring by over 20% this weekend to $265 on BTC-e. It is bitcoin’s highest price in nearly three weeks, since immediately after the launch of Coinbase’ exchange.
The gains have accumulated steadily over the past 48 hours, in contrast with other recent rallies better characterized by large, sudden spikes.
Volumes have peaked as high as 2,500 BTC/hour.
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The bullish signal from this weekend’s rally is bitcoin’s rising above its 50-day moving average (MA) for the first time since during the Coinbase-inspired hype three weeks ago. Helping it cross over was the MA’s continued downward trajectory, which has brought it to near $240, its lowest since November 2013.
The crossing three weeks ago lasted less than 24 hours as the Coinbase hype quickly subsided. This weekend’s stronger behavior, combined with the fact that BTC has held its ground above $200 since early January’s volatility, may be a signal that prices have bottomed in the mid-term. However, a more consistent behavior than during the Coinbase hype is necessary to give this theory credibility.
Litecoin has broken back above $2.00, also for the first time since last month’s rally. It has, however, appreciated at a slower pace than BTC, as reflected by the LTC/BTC rate falling well below 0.008.
Prices on BTC-e are $2.50 (0.95%) below those on its peers, a smaller than average offset.