Honestly dude that looks more like a shingles outbreak to me. The black and blue mark is definitely going to get ugly and I've seen shingle outbreaks with exactly that same thing happen.
I had shingles in 2010.
I don't think it's that. Doesn't feel like shingles, and it would be a coincidence that it showed up right when bugs bit me.
From what I read, I also have a 96% chance of never having shingles again, because I already had it once.