Bitcoin Traders Adopt 'Wait and See' Stance As China Impact Fades

After a wild start to 2017, bitcoin took it slow this week.

This relative calm was punctuated by a handful of sharp fluctuations, which saw the digital currency’s price fall to as little as $810 on 15th January and rise to as much as $914 on 18th January, data reveals.

But, despite the calm, there was uncertainty under the surface.

According to analysts, the market is still reluctant to make big moves in the wake of continued news from China that has found its central bank more actively engaging with local exchanges.

Trader reluctance

For now, this is keeping traders on the sidelines.

Ryan Rabaglia, head trader and digital asset specialist at Octagon Strategy, described the situation as one where 'wait and see' is still the attitude.

"Although the last round of news out of the mainland has seemingly been fully digested, we're still seeing most traders sitting on the sidelines," he told CoinDesk.

Bitcoin Prices Spike Above $900 But Turbulence Remains

Bitcoin prices passed $900 today, though this feat was diminished by several rallies that ultimately failed to push its value above this benchmark.

Overall, the digital currency rose to as much as $904.76, after falling below $880 earlier in the session, climbing above this level amid modest volatility.

Later in the session, the price mounted another comeback, hitting a high just above $905, according to the CoinDesk USD Bitcoin Price Index (BPI). At press time, however, the price had dipped again to a value of $894.95.

This upward movement represented the latest session of relatively mild price volatility, at least compared to the sharp price fluctuations experienced earlier this month.

Most notable, however, about the day's trading, may have been the lack of any serious decline over the day's trading.

Bitcoin prices enjoyed their latest climb in spite of new Chinese regulatory developments that found the nation’s exchanges responding publicly to pressures from the People's Bank of China, the country's central bank.

Bullish sentiment

Still, market sentiment has been bullish, according to figures provided by a handful of exchanges, even with the confirmation that major Chinese exchanges Huobi and OKCoin had stopped offering margin trading. The market was 91% long on 19th January, Whaleclub figures reveal.

Tranquil price movements - what's next?

Bitcoin prices have thus far enjoyed a day of reasonably tranquil price movements.

During today’s session, the digital currency fluctuated between $820 and $835, having fallen to as little as $820.05 at 12:15 UTC and risen to as much as $834.70 at 02:15 UTC, according to the CoinDesk USD Bitcoin Price Index (BPI).

The lack of volatility that bitcoin prices have seen thus far today coincides with a broader trend, as bitcoin prices have been moving between $800 and $840 since late last week. The average price is currently $828.82, BPI data shows.

Traders have been watching the markets with suspense and waiting to see what steps the People’s Bank of China (PBoC), the country's central bank, will pursue after it held meetings with major Chinese exchanges BTCC, Huobi and OKCoin earlier this month. The PBoC later pledged to keep a closer eye on the ecosystem.

“We’re all waiting to see whether the PBoC does anything serious," said Tim Enneking, chairman of cryptocurrency hedge fund EAM.