BTC/USD is trading near the 24,900.00 ratios as of this writing with fast conditions producing impressive choppiness. The regional banking crisis in the U.S. has caused plenty of questions among financial institutions, and one of the speculative assets receiving attention is Bitcoin. BTC/USD was trading near the 19,900.00 mark this past Saturday but has climbed steadily since hitting this near-term low.
Influencers and investors of Bitcoin are now strutting, and being rather vocal about BTC/USD has proved again that it is a valid financial asset, in comparison to other speculative vehicles taking into account the problems surrounding Silicon Valley Bank. However, if the bluster from the influencers and speculators of BTC/USD is listened to carefully, they still can’t give any real fundamental reasons why this will continue to prove viable over the long term. BTC/USD remains a speculative betting tool in my opinion, one that is full of danger and should be treated with a conservative wagering approach.
Yesterday’s Climb above 26,000.000 was Intriguing in BTC/USD
Highs attained yesterday when BTC/USD traversed the 26,545.00 realms were last seen in June of 2022. The reversal lower after hitting these long-term higher values yesterday could be considered a bit of profit-taking, but considering the lack of clarity regarding why BTC/USD has suddenly been able to climb to better values leaves a lot of questions that are hard to answer.
- The reversal lower since touching highs yesterday has BTC/USD within a price range which the digital asset traded in the middle of February this year.
- The surge higher in BTC/USD the past few days certainly coincided with the announcement from the U.S. government, that it would make sure depositors of Silicon Valley Bank were able to recover all of their money, including Circle Internet Financial which offers the stablecoin USDC.
Speculators Choosing to Pursue Higher BTC/USD Levels should be Cautious
Perhaps speculators of BTC/USD will find my comments here unhelpful, I am certainly a skeptic of Bitcoin. If a trader wants to buy BTC/USD because they believe the trend is going to continue to go up because Bitcoin has suddenly been able to show why it is so important once again in the financial world are welcome to their opinions, but they should be extremely careful and still use solid risk management.
Day traders need to understand the volatility in BTC/USD can move a couple of thousand USD in one direction rather quickly, conservative leverage is urged while betting on Bitcoin. Traders wanting to look for the downside, because they are also skeptics or simply believe support levels will be challenged again should also be cautious. Looking for BTC/USD to suddenly flirt with lower values may prove correct, but it may take more time than day traders have. Thus, narrow take profit targets could prove a way of betting on BTC/USD with carefully chosen stop-loss ratios working too.
Bitcoin Short-Term Outlook:
Current Resistance: 25,325.00
Current Support: 24,450.00
High Target: 26,075.00
Low Target: 23,690.00
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