After trading as low as $912 on MtGox yesterday, Bitcoin (BTC) has swung high and low as it looks to restabilize.
BTC initially recouped most of its losses, climbing to near its old resistance level of $975, only to once again shed 5% to $920. It has since come this level, rebounding slightly to $950 and now trading in the $930-940 range. The progressively tightening trading band, notably centered around its pre-volatility $940 level of stability, may be a sign that the cryptocurrency is resettling into what traders are increasingly considering as its safety range. Currently, it has also realigned with its 15-day moving average of $935.
Another sign of stabilization is the return of lower trading volumes. Volume has been decreasing since it first spiked, peaking at no more than 1600 BTC per hour during the decline and now back below 200 BTC per hour.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
On BTC-e and Bitstamp, BTC is trading in the $780-790 range. Over the past 24 hours, BTC has not swung nearly as violently on these exchanges as it has on MtGox, instead keeping to its post-recovery level of $800-810 within shooting distance. It is even forming a shallow valley of support in and around its current training range.
The spread between these exchanges and MtGox is down to $150 due to the subsequent fall from $970 on MtGox- another sign of stabilization about the $940 level.
As the shock of the recent high-profile arrests starts to wear off, traders are starting to look for the next development that has genuine implications for moving Bitcoin’s value. In the back of their minds, many will also view New York’s consideration to license digital currency operations as much of a benefit as it is a drag.