Bitcoin: Weekend Stumble Raises Questions and Stakes Today

Robert Petrucci

BTC/USD has stumbled rather dramatically from the 59,100.00 price it was trading on the 1st of December and this weekend’s flash crash has created more tension.

On the 3rd of December, BTC/USD was traversing rather tranquilly near the 57090.00 value, but selling pressure began to build and over the next day the cryptocurrency fell hard.  Saturday’s flash crash took Bitcoin to 42,100.00 momentarily. Yes, BTC/USD was able to recover some upwards trajectory and traded near a high of almost 49,980.00 yesterday.

However, in early trading this morning, BTC/USD has again demonstrated some nervous selling and the speculative asset is near 48,750.00 as of this writing. Bitcoin is likely to remain within fast conditions today, and traders who feel the urge to be part of its wagering machine need to have all of their risk management tools working.

Since reaching a high of nearly 69,000.00 on the 10th of November, BTC/USD has run into headwinds and moved lower. While a lot of this movement had been incremental over the past few weeks, this weekend’s steep dive witnessed a strong dose of price velocity and the ten percent move is a stark reminder that Bitcoin is a dangerous adventure for unprepared day traders. Cautious amounts of leverage need to be used and stop loss order are urged.

BTC/USD appears to be near critical support levels as of this morning. If Bitcoin begins to test waters below the 48,600.00 to 48,500.00 levels this could cause additional nervous sentiment to filter into the marketplace. If another wave of selling is sparked the level that should be looked out for is near 47,100.00, price action below this ratio in a sustained fashion would put early October’s value into sight and spark fears of a bear market developing in earnest.

BTC/USD remains a speculators paradise. The large move downwards this weekend would cause widespread concerns among most assets, but Bitcoin has seen days like this before. Traders who want to engage in buying are certainly lurking, the question is when they will enter the market in earnest and if they can create upwards force. BTC/USD is still close to the 49,000.00 level and if bullish momentum suddenly thrives, traders who are optimistic could target the 50,000.00 mark. All speculators of BTC/USD are encouraged to remain realistic whether they are sellers or buyers and volatility is not only expected, it is natural in Bitcoin.

Bitcoin Short-Term Outlook

Current Resistance: 49900.00

Current Support: 48500.00

High Target: 52865.00

Low Target: 46815.00

BTC/USD

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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