Bitcoin took a sizable nosedive on September 11 - hitting a low of $585.67 that day - but the market has slowly made its way north during the rest of September. While BTC is now trading above $600, it's important to note the technical importance of the $586 area.
Prior to the big sell-off on the 11th of September, $586 acted as resistance on August 22. Then, on September 20th, the $586 level acted as support once again. Therefore, this area has a fairly extensive history on the charts and traders should be very mindful of this important technical area.
A further examination of the 4-hour chart also shows the technical significance of the $607 area:
The area surrounding the $607 price level prevented the market from rallying on multiple occasions between the 13th & 17th of September. Price finally broken above the massive resistance at $607, on September 30, and this powerful zone is now essentially acting as support - holding up the market for the time being.
Regardless of the short term fluctuations and hype-driven price spikes, the fundamental outlook for the digital currency is growing stronger with each passing week.
For instance, weekly bitcoin turnover on LocalBitcoins - the most popular P2P marketplace in the world - has been on the rise this year in most developed and developing countries, especially in nations with high annual inflation like Ukraine, Russia and Venezuela.
Charts from Coin.dance, a site that tabulates trading data from LocalBitcoins, shows the undeniable swell of interest in Bitcoin across the globe:
And it’s not just small-time traders and speculators that are joining the crypto-economy. Deloitte, which has been vigorously exploring Bitcoin’s underlying technology - the blockchain - for use cases in a variety of industries, recently installed a BTM (Bitcoin Teller Machine) in one of their offices in Toronto, Canada, for the first time.
Bitcoin's infrastructure has expanded considerably across the world as well, particularly in the United States. A recent article by Bitcoin.com showed that 20 new BTMs were installed over the summer in the US; EasyBit installed six new machines in Texas, Hawaii, Georgia, and Utah; Chicago-based Athena Bitcoin launched seven new BTMs this month in Texas, Illinois, Georgia, and Florida; Dallas-based Coinsource installed four new machines in New York, Nevada, and Pennsylvania.
Forex brokers like FXOpen have also warmed up to the technology. In July of this year, FXOpen unveiled the new Bitcoin-funded ECN trading accounts, which allows traders to bypass legacy funding methods like wire transfers & credit cards.
Even beverage companies like Red Bull have entered the fray with the recent launch of the first Bitcoin-powered Red Bull vending machine, unveiled for the first time at the Hackers Congress Paralelní Polis 2016, in Prague.