Shades of May 2011 as Bitcoin Tops $6.00

In a round of extremely volatile trading, Bitcoin hit $6.00 today and is now up 200% from the November 17th low of $1.99, and up 27% in only the first four days of 2012.

24 hour volume on the Mt.Gox USD market is in excess of 151,000 BTC, representing a very busy day on the Japan-based exchange.

$6.00/BTC was last seen on September 21st, only a couple of weeks after Bitcoinica first opened its doors and gave Bitcoin traders the opportunity to short the market. Interestingly, if Bitcoin crosses through $8.00, it will be theoretically impossible for any legacy short positions to still be in-the-money, as shorting the market was not possible above those prices.

What's to blame for this bullish market? It could be anything from recent positive media coverage to new software and service announcements. Whatever the case may be, clearly, people want their Bitcoins in a way that hasn't been seen since last May.

Posted in: bullish,trading