Bitcoin Flat on Low Volume

BTC prices on MtGox were flat early Thursday as traders had no reason to push the cryptocurrency in either direction. BTC is in a tight holding pattern around $945 for the last 12 hours on light volume. In fact it is on par with its 30-day exponential moving average (EMA), which has been constantly rising until yesterday. It is still well above its 30-day simple moving average of around $800.

It is unlikely that the recent flatness in the cryptocurrency's value will usher in a new era of stability. What's more likely is the unwillingness of traders to make any major bets in the absence of: market moving news items, bets from fellow traders or wild price movements driven by supply/demand anomalies. In addition, even if this were a sign of calmer market sentiment, the range of movement around the $945 mark still measures at +/- 1% and does not come close to competing with traditional fiat currency's stability. It does tell you how things may look in future instances where not much is going on or as a precursor to long-term stability.

Then again, if stability is ever attained, prices will no longer be neutralized by lingering doubts as to the cryptocurrency's sustainability, which in turn will free its value to gradually grow over time.

(Chart Source: Bitcoinwisdom.com)