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Bitcoin enjoyed one of its most productive months in its short history, less than a month after facing one of its most serious challenges. The turnaround has been nothing short of remarkable and has made even some of the central bankers to sit and take notice. In this period, the bitcoin market has also proved to the naysayers that it is here to stay for the long term and would not just vanish or crumble like many people, including some financial leaders, would like us to believe.

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Bitcoin Markets Overcome the Challenge

In September, China, one of the biggest markets for the bitcoin industry, as far as mining and trading was concerned, announced that it was shutting down all the bitcoin exchanges and banning ICOs as well, placing a large question mark on the industry. This led to a large correction in the prices but as always, the bitcoin industry has managed to surmount the challenges. After a period of large correction followed by consolidation, the prices have since recovered during the month of October.

Bitcoin Weekly

From the lows below $4400, the prices made a slow and steady rise through $5000, challenged the all time highs at $5800 region and then finally broke through this region to post new highs in the $6300 region, all within a matter of one time. A rise of almost $2000 per bitcoin within a period of one month should be considered as truly remarkable. This turnaround helped to gather the trust of several investors and traders and though some of the financial leaders continue to believe that bitcoin is a fraud and a scam, we also have some of the central bank leaders, including powerful ones like the ECB President Draghi saying that bitcoin could provide an interesting alternative to fiat currencies.

This kind of recognition was a huge boost for the bitcoin industry and it was capped off by the news at the end of the month which said that one of the largest exchanges in the world, the CME, would consider introducing futures trading in cryptocurrencies if the conditions were ideal and agreeable to the regulators in the USA. This helped to further boost the price and helped the bulls to get even more aggressive as we head to the new month of November.

Looking ahead to the month of November, we have every reason to believe that the bullishness in the bitcoin prices is likely to continue during this month as well. The bitcoin market has been gathering more and more supporters during the course of the year and the speculators and the traders have been emboldened by the fact that the prices have been able to bounce back, everytime that there has been a correction. This augurs well for the future of the industry as it helps to bring in a sense of calm among the buyers even during periods of large correction.

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Bitcoin Prices Look Higher

On the technical front, the bitcoin prices tend to follow some similar price action when the bullish trend is underway and this constitutes a period of bullish run, followed by some correction and a period of consolidation as the bulls gather strength for the next bullish leg. So, as long as the traders stick to the technicals and regions of support and resistance, they should be safe and they should be able to do well in this market. With this latest push up, the regions of support stand at $6200 and $6400 with the next resistances being expected at the regions around $6800 and $7000 as well.

It should also be noted that as the bitcoin industry gathers more and more believers, who believe that it is here to stay for the long term, the pace of the rises in price have got more and more quicker and the jump from $5000 to $6000 has been one of the quickest and strongest rises that has been seen in this market. This points to the volatility in the market and shows what is possible for the traders to achieve in this market while at the same time, pointing out to the risks in this market as the corrections have also been equally fast and brutal as well.

 

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