Bitcoin (BTC/USD) has gone from extremely volatile to surprisingly stable during the past 24 hours, its total range less than 1.5% in either direction.
It is currently trading at $209.30 on BTC-e. Save for a brief swing around the time of yesterday’s Coinbase announcement, BTC has exhibited its flattest behavior thus far in a wild 2015.
Volumes across the crypto markets have been well below normal during the past 24 hours. On BTC-e, traded volume is in the neighborhood of 100-200 BTC/hour. Only $750,000 worth of litecoin has been traded, well below the typical range of $2-3 million.
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Such flat activity, which may take more than a few days to wear off, is often the prelude to the next major unexpected move. BTC prices are giving a false impression of residing on solid ground; There are forces potentially pushing it a great distance in either direction.
The best trading strategy right now is simply to wait on the sidelines. If bitcoin options were widely available, the straddle would potentially be a good choice (if the coming move is anticipated to be newsworthy).
Prices on BTC-e are about $3.50 (1.7%) below those on its peers, in line with its average offset.