Bitcoin secret price stability bores traders and creates confidence

With an almost unchanged trading volume, Bitcoin has been trading very stable between 415 and 425 US dollars over the past 8 days.

Bitcoin secret price movement

Some experts say the long-lasting price stability and low volatility of the digital currency bores a lot of traders and has already driven some of them out of the market. Blockchain and management consultant George Samman says Bitcoin secret volatility is currently lower than it has been since 2012. The result of the Bitcoin secret is a low trading volume, which is currently well below the 52-Day and 52-Week Moving Averages.

“I still think it’s the calm before the big storm,” Samman says. “It’s almost like a non-trading zone.”

Zane Tackett, head of product development at Bitfinex, the Bitcoin exchange, has a similar view: “At the moment there are only a lot of people observing and waiting, which has ultimately calmed the market down.

He says that the market is waiting for “how to solve the scaling problem” and “whether the SegWit (Segregated Witnes) Soft-Fork will be set up smoothly and on time in April”.

Other market observers such as Arthur Hayes of BitMEX say that seasonal factors such as the Easter holidays and the Qing Ming holidays in China also play a role in the low trading activity in the Bitcoin market.

According to the CoinDesk price index, the Bitcoin price rose from 415.42 US dollars to 421.07 US dollars from the beginning of the month until April 8, 12:00 UTC – this corresponds to a growth of 1.4%.

Most of the time, however, the Bitcoin price moved between 415 and 420 US dollars. Until April 8 only 5 million Bitcoins were traded – a value that was far exceeded with 32 million Bitcoins in the previous week.

Ether is volatile

While Bitcoin showed its quiet side last week, the digital currency ether was hot on the heels. Here the ethereum fell 14.3% from 0.028 BTC to 0.024 BTC on 8 April 12:00 UTC.

Due to low Bitcoin price volatility, some traders were looking for an alternative such as ether, Hayes said. Here we saw a 24-hour trading volume of 19,898 BTC of ether at the end of the week due to strong interest in ether.

Christopher Burniske, analyst at ARK Invest, subjected Ether to a technical analysis:

“Ether broke through the triple bottom support barrier at around 0.0235 Bitcoin/Ether – which had been forming since March 20. If Ether doesn’t manage to reverse this trend, it is likely that the price will continue to fall to 0.020. Here we could observe on 18. March a high trade volume – at that time the price rose rapidly here.

Confidence in Bitcoin grows
While Bitcoin price stability has generated a lot of interest in the digital currency ether, some experts say that the low Bitcoin volatility gives more confidence to the digital currency.