Bitcoin (BTC/USD) has flatlined near $340 in slow weekend trading on BTC-e.
The last 24 hours have seen BTC converge to the low $340s, deviating by no more than 0.5% in either direction and the band further tightening around $342 during the past 12 hours. During that stretch, BTC further showed unusually flat behavior in plateauing at exactly $343 for 6 hours straight, possibly due to some large limit orders dominating otherwise ultra-light volume.
Traded volume has dropped to about 50 BTC/hour, well below the recent average, even for weekends.
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The unusually flat behavior represents a major change to the relatively wild price swings experienced 72 hours ago, when BTC unexpectedly reversed to as high as $357 from a one-month low of $332.50–only to surrender these gains as it drifted back into the low $340s.
The recent flattening is more indicative of a low volume market where many players remain on the sidelines, as opposed to a genuine stabilization in prices.
When traders do return to the floor, a resumption of volatility is likely. BTC has convincingly crossed below its 50-day moving average (MA) and has been developing a pattern of decreasing points of resistance. Its immediate-term support level of $339 is also being repeatedly tested, and the next breach of this sensitive zone may send BTC past last week’s low.