Volatility Is Back! Market Bounces Hard Into $360s Before Retracing

[bitcoinmarkets]

From here: http://www.bitcoinfuturesguide.com/bitcoin-blog/volatility-is-back-market-bounces-hard-into-360s-before-retracing



Against all odds, bitcoin surged mid-day in a 10% move that caught many in the market off guard.

Immediately the premium exploded on OKCoin and BitMEX as the sentiment got extremely bearish. However, it ran out of steam and when you zoom out into larger timeframe you get an appreciation for the resistance it is up against (12-hour candles):



After a really nice fat green 12-hour candle to break the two-week lull in the market, we have a fat wick up right into that upper $300s zone that poses serious resistance to any future move upward.

For now we finally have some action back in the market, and with settlement tomorrow and the weekend around the corner, we could see how volatility begets more volatility. Stay tuned, traders.​

[unent]

Could this news about China's securities regulator getting brokerages to cease swap business, and stopping existing businesses from extending upon maturity affect leveraged exchanges like OKcoin and Bitfinex? If it does could it stop movement upwards in the Bitcoin markets? I don't know if the news applies to Bitcoin exchanges that offer leverage.

http://uk.reuters.com/article/2015/11/26/uk-china-stocks-swaps-idUKKBN0TF0ZD20151126

China's securities regulator has urged domestic brokerages to cease financing clients' stocks purchases using swaps and other over-the-counter derivatives, two sources with direct knowledge told Reuters.

The latest move by the China Securities Regulatory Commission (CSRC) to decrease leverage in the equity market comes after CITIC Securities (600030.SS) was discovered to have inflated its swap trading by $166 billion, which it blamed on an IT upgrade.

The CSRC did not respond to calls requesting comment.

CSRC is mainly targeting the total return swap business, which in effect allows investors to obtain leverage from brokerages to bet on stocks traded both on exchanges and in the OTC market, said one source with direct knowledge of the matter.

According CSRC's window guidance, brokerages must cease such swap businesses, while existing businesses cannot be extended upon maturity.

[bitcoinmarkets]

Could this news about China's securities regulator getting brokerages to cease swap business, and stopping existing businesses from extending upon maturity affect leveraged exchanges like OKcoin and Bitfinex? If it does could it stop movement upwards in the Bitcoin markets? I don't know if the news applies to Bitcoin exchanges that offer leverage.

OKCoin and Bitfinex margin is provided by counterparties for one another, the exchange is not providing any leverage in either case. OKcoin = counterparty futures, Bitfinex = "margin funding" provision done purely by customers or customers. So if what you are saying only affects brokerages who provide financing to customers, then I don't believe it applies in this case.

[richardsNY]

To be more precise, the volatility was never gone. Something has triggered people to start panic buying today making the price reach nearly $370. I only think we have seen the peak today and it will most likely fall back to our well known $330 price level.

[croato]

Black Friday have bigger influence on Bitcoin than i have expected. I hope we will have somewhat higher floor next week, situation is way different than on past Black Friday.

[dloghwak]

Black Friday have bigger influence on Bitcoin than i have expected. I hope we will have somewhat higher floor next week, situation is way different than on past Black Friday.

This rally has nothing to do with Black Friday, why do people believe this nonsense?

[randy8777]

Black Friday have bigger influence on Bitcoin than i have expected. I hope we will have somewhat higher floor next week, situation is way different than on past Black Friday.

This rally has nothing to do with Black Friday, why do people believe this nonsense?

people think so because the price indeed has gone up a day before black friday. i don't think it has anything to do with black friday. as long as we don't know what the reason behind this "pump" is, it can be considered a black friday "pump".