Bitcoin has seen its value move by nearly 9000.00 USD in trading the past day as volatility is affected by anxious speculation.
BTC/USD has seen a stark decline and a rise again in the past day of trading. As of this writing, Bitcoin is above the 50000.00 value and has proven it has the ability to withstand rather violent declines once again. The cryptocurrency marketplace has become engulfed with media coverage and a host of analysts are weighing in with their opinions. Bitcoin is the lynchpin within the crypto world and it isn’t about to be displaced in the near future.
Speculators need to understand that the moves within BTC/USD are not only volatile, but can produce game-changing results within a moment’s notice. A mere warning to use risk management cannot be overstated and traders should not be insulted when it is recommended. Traders need to have the ability to use limit orders and also control their emotions.
On the 21st of February, BTC/USD was trading above the 58000.00 level before stumbling. Yesterday’s lows of nearly 45500.00 is a prime example of the movement Bitcoin can generate and its climb upwards from low water marks now has BTC/USD challenging moderate resistance levels. Yes, there are support and resistance levels to look at via technical charts, but traders must acknowledge that these marks can be brushed aside rather quickly because of the vast ability of Bitcoin to move lightning quick.
While it may not remain for long, the resistance level of 52267.00 should be watched; if it is broken higher, BTC/USD could pose an attack on the 55000.00 juncture remarkably fast. If BTC/USD takes a turn for the worse in the short term, traders should keep their eyes on lower junctures near the 46050.00 ratio. Selling pressure below this lower support mark could ignite a test of the 40000.00 price.
When BTC/USD sunk yesterday, there was an immediate chorus from its ‘backers’ to buy on dips and not panic. The philosophy of ‘’hold on for life’ is rather well known to Bitcoin enthusiasts, but speculators need to also pay attention to their gut instincts and technical charts. BTC/USD remains within the realms of an exuberant marketplace and its journey higher has been spectacular, but traders need to remain rational when pursuing Bitcoin. Short-term buying on lows as BTC/USD test support levels remains a speculative logical choice, but there is no denying it is a wager.
Bitcoin Short-Term Outlook:
Current Resistance: 52267.00
Current Support: 48680.00
High Target: 54710.00
Low Target: 42725.00