BTC/USD is near the 23,100.00 prices as of this writing with abundant volatility on full display. After achieving a high above the 24,000.00 ratios on Monday, Bitcoin has seen a rather choppy and violent selloff. However, experienced traders of BTC/USD may simply shrug their shoulders when 1,000.00 USD moves are seen in the world’s most famous cryptocurrency.
BTC/USD may remain under a rather dark cloud regarding widespread negative media coverage of the cryptocurrency world, but obviously, a crowd of speculators still exists and has created moves upward since the start of January. The short-term question for day traders is if they can step into potentially higher bullish momentum which has been exhibited the past month, or if they should consider selling BTC/USD with the notion that buying has been overdone.
BTC/USD Boom and Bust Cycles for Day Traders
Highs achieved on Monday touched values not seen since August of 2022. The ability to recapture value in Bitcoin is a positive for the digital asset, but it should be acknowledged that the value BTC/USD touched early this week is still far below its upper realms of the past. In June of 2022 BTC/USD was above the 30,000.00 ratios.
Speculators need to consider their ability to emotionally handle the boom and bust movements of BTC/USD, and solid risk-taking skills are needed to handle the large and fast changes to the value. The quick turnaround of trading cycles in Bitcoin keeps the speculative asset very dangerous. Traders who think BTC/USD has been overbought cannot be blamed, but it is dangerous to bet on downside price action.
- The 23,000.00 mark could prove to be an important support ratio for BTC/USD in the short term. If this level is proven vulnerable and sustained trading starts to be demonstrated below, it could spark a nervous reaction.
- If BTC/USD produces a surge and begins to challenge the 23,400.00 to 23.500.00 levels and prove it can stay above these marks, additionally buying action may build and the target of 24,000.00 may come into play for speculative wagers.
BTC/USD Remains a Speculative Betting Landscape with Huge Price Action
Having produced a solid month of gains, BTC/USD remains a tempting speculative asset to create fast profits. However, the pursuit of fast profits can also equate to fast losses and money being wiped out. Bitcoin remains a highly speculative bet for day traders and if too much leverage is being used, things can go bad in a hurry.
Having attained a solid high on Monday may produce a group of traders who want to bet on BTC/USD buying action being too strong. Speculative selling positions of BTC/USD need solid risk management though and the use of take-profit orders to cash out winning positions should they develop.
Bitcoin Short-Term Outlook:
Current Resistance: 23,425.00
Current Support: 22,950.00
High Target: 24,200.00
Low Target: 22,510.00
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