The recent price move in Bitcoin of slightly more than twenty percent in four days has been long awaited, additionally this move was with robust trading volume. This price move includes three higher trading levels along with associated levels of volume is the reawakening we’ve been anticipating. A price move with this amount of volume states that this is the new price level for Bitcoin.
However, not to cloud this up-move, we should expect that those with a need to sell will do so at these higher levels. Those needing to sell include the Miners as this is how they recover their mining cost and cover expenses.
Overall, no real bad news on the Bitcoin scene as most of the negative news has been expended in the last few months resulting in the closing of the US Bitcoin exchanges, i.e., MtGox and others. Therefore any positive news should propel Bitcoin in another move up. We are still awaiting news on the China exchanges moving off-shore and expect this move to have a dramatic effect on trading price and volume.
At this point even the awaited word from Congress is viewed as mostly positive in that any regulations will only concrete Bitcoin as a tradeable commodity and continued use as a currency exchange mechanism – notice we stopped short of saying currency since chances are slim that any Congressional ruling will strive to establish Bitcoin as its preferred currency and will continue to fight Bitcoin at all levels of competition to the Dollar.