- The ‘promised land’ of U.S ETF funds begun late last week and thus far the results have not produced a rocket ride upwards.
- The price of BTC/USD is trading near 42,700.00 as of this writing with typically fast fluctuations being demonstrated.
- Yesterday’s trading approached the 43,500.00 as intraday high, the value of BTC/USD last Thursday briefly topped the 49,000.00 mark – this following the official announcement from the SEC that Bitcoin would be allowed to legally trade under the umbrella of U.S based ETFs run by investment companies.
The past week of trading has not delivered what some influencers were likely assuming would be an unstoppable bullish frenzy. In fact the price of BTC/USD has shown a rather polite range since the 12th of January and largely traded between 42,000.00 and 43,400.00 with some occasional outliers. It should be pointed out the ‘outliers’ have largely been towards the downside and a low of 41,700.00 was challenged this past Friday and on this Sunday.
BTC/USD Speculators versus Bitcoin ‘Investors’
Day traders participating in speculative BTC/USD trading via crypto exchanges or via brokers that offer CFD wagers understand that bets can be placed that are looking for downside price action. While some rather ‘blind’ Bitcoin investors may believe the launch of ETF products in the U.S would lead to only upside momentum, they have likely not counted on the possibility that some large Bitcoin traders might lurk that will want to ‘borrow’ Bitcoin ETF shares in order to ‘short’.
Some influencers who preached the coming prosperity of BTC ETF investments may be proven to be correct over the long term, but while the upside looks bright to many, nothing is guaranteed regarding value in BTC/USD. Bitcoin – the digital asset – can be sold before it is bought inside of some cryptocurrency exchanges too. Which means BTC/USD as it has done the past week, can still produce downside prospects for traders looking to wager on bearish trends.
BTC/USD Price Stability and Speculative Positions
- While BTC/USD has gone down in value the past week, it must be noted after hitting support that Bitcoin has also reversed upwards.
- The current value of BTC/USD is near price realms seen on the 19th and 20 of December, which highlights stability when a one month perspective is taken.
Traders with a taste for speculative wagers looking to profit on BTC/USD must remain conservative regarding risk management, the use of leverage can produce profits but it can also ignite rapid losses. Support levels in BTC/USD may look durable currently, but there always has to be the acknowledgement they can turn vulnerable and lower prices could actually be produced.
Bitcoin Short Term Outlook:
Current Resistance: 43,050.00
Current Support: 42,575.00
High Target: 43,725.00
Low Target: 41,895.00