Bitcoin prices have found support above $600 in the weeks following the jarring news of Mt. Gox’s closure and purported loss or theft of nearly all customer funds. Prices ticked higher just short of a new high for the month Saturday at $646.49 on the Bitstamp exchange, ending the week in an even narrower band of roughly $35 between $615 and $650 versus the prior week’s slightly wider range of ~$605 to $652.
Rebounding from a low of $401.99 at Bitstamp to $609 in the two days following the Mt. Gox
While this narrowing wedge pattern is potentially bearish
Behind the scenes of Mt. Gox and the bitcoin speculators, there are huge strides taking place in mainstream bitcoin adoption which could place a floor under the bitcoin price and lead to gains in price when demand for this means of payment picks up in the fall.
While the media feeding frenzy on Mt. Gox was full of negative coverage for bitcoin, there is also the saying that all press is good press. And as days passed, the r/bitcoin forum on reddit grew full of dozens of new major retailer or service providers announcing their acceptance of bitcoin, displacing almost entirely the
Patrick Byrne, CEO of Overstock.com,
Wall Street is not uniformly against digital currency, however, as Coindesk reports New York is preparing to allow bitcoin exchanges to open there under new regulations. And they’re going far beyond just acknowledging the mere existence of bitcoin, and then dismissing it entirely as Warren Buffett had recently, politely calling it a “mirage”.
Yet the venerable Wall Street firm Goldman Sachs has just released a
Also reported on Coindesk are actions of industry heavyweights like eBay, filing a patent to possibly integrate bitcoin with its Paypal service, and Google, whose Google Ideas COO recently declared “digital currencies are inevitable.”
In support of that notion, the marketplace for bitcoin in the economic and business worlds is steadily making gains while prices have quietly consolidated above $600. However, if the albeit short history of bitcoin is any guide, higher demand for the digital currency may translate into future price gains.