Posted by: Evan Faggart October 26, 2014
The week of October 25, 2014, saw some sudden and unexpected drops in the Bitcoin price. After last week’s bullish activities, the markets cooled off during the first half of the week — with the Bitcoin price leveling out — and then suddenly entered a bearish decline in the last few days of the week. During this week, the price fell from $394 on October 19 to $347 at the close of October 25, a substantial decline of 11.93%. Let us take a closer look at some of the daily activity that took place on the Bitstamp Bitcoin exchange during the week. Please note that the prices on the list below have been rounded to the nearest dollar amount. Therefore, the descriptions of the price movements in this update will not be 100% accurate. Additionally, please note that, on the list below, the closing price is shown for October 25, while the rest of the days show the opening prices.
Oct 19: $394
Oct 20: $383 (-2.79%)
Oct 21: $383 (0%)
Oct 22: $ 387(+1.04%)
Oct 23: $378 (-2.33%)
Oct 24: $353 (-6.61%)
Oct 25 Close: $347
The week began on October 19, 2014 with the Bitcoin price at $394. This day marked the last day that the market would enjoy the highs reached by the excitement in the aftermath of the BearWhale sell wall on the Bitstamp Bitcoin exchange. The price on the 19th was level for the first few hours of the morning. Then, between 3 AM and 5 AM, the price dropped from the $390s to the high $380s. The Bitcoin price hovered in the high $380s to low $390s range until the evening hours. The price began falling at 7 PM, and by the close of the day it had hit $383, below the high $380s to low $390s range that had persisted for most of the day.
The next three days were very flat in terms of Bitcoin price activity. October 20 saw some up and down fluctuations in the morning hour, but the price leveled out at 8 AM. Then, starting at 5 PM, the price declined for a few hours and then began recovering at 9 PM. The 20th closed at $383, no change from the start of the day. The 21st began on the upswing, with the price gradually increasing during the morning hours. The price climb stopped at 9 AM, though and the price fell slightly before leveling out in the mid-to-high $380s. This $380s range persisted for the rest of the day, and the 21st closed out at $387 — making for a 1.04% increase over the start of the previous day. October 22 was even flatter than the previous two days in terms of Bitcoin price activity. The price hovered between the low-to-high $380s for the entire day. At the very end of the day though, there was a relatively sharp drop and the day was closed out at $378.
After those three days of flat Bitcoin price activity, the 23 opened at $378 and started the significant declines that would persist for the rest of the week. The price fell steadily during the entire day; by noon the price had fallen to $361, and by 10 PM it had fallen to $357. October 23 closed at $353.
Friday, October 24 opened at $353 — a 6.61% decline over the opening price on the 23rd. There was an attempted recovery during the morning, but the Bitcoin price climb ended at 10 AM and the price began falling once more. At 9 PM, there was a relatively sharp drop from $358 to $353. Immediately after, at 10 PM, the price recovered slightly from that drop, and the day ended at $357. Thus, the attempted recovery at the beginning of the day did actually have some positive effect, as the day closed out with the price slightly higher than it was at the beginning of the day.
The 25th of October opened at $357 and began falling almost immediately. At 3 AM, there was a massive downward spike in the Bitcoin price from $357 at the top of the hour to $348 at the bottom — in addition to an hourly low of $345. At the close of the 6 AM hour, the price bottomed out at $341. Then, at 7 AM, the Bitcoin price began rising. Leveling out in the high $340s to low $350s range, the week ended at $347.