BTC/USD has taken on the look of an equity index as it produces massive moves which have its believers singing its praises and speculators contemplating if they can still join the party. Bitcoin was trading near 19700.00 on the 16th of December, but since breaking resistance levels of 19850.00 on the 18th of December and sustaining its value, BTC/USD has produced a breathtaking ride upwards.
As of this morning, Bitcoin is traversing the 23550.00 range with quick trading. Traders who are new to BTC/USD should use limit orders to pursue trends, but by doing this, admittedly they may also miss out on the speculative bullish momentum which continues to manifest. Choosing when to trade BTC/USD is an important component speculating on the cryptocurrency, as trends are very important.
Traders can certainly have skepticism about BTC/USD’s move upwards and try to speculate with selling positions. However, stepping in front of the current trend of the cryptocurrency may create a devastating result if the trade goes in the wrong direction and stop loss ratios are not used properly. Technically choosing where to place stop losses near existing support to buy Bitcoin may be easier than trying to predict when and how high BTC/USD can elevate.
However, the past twelve hours of trading has seen a slight reversal emerge, so speculators looking for upside momentum can look at a one-day chart and view technical resistance levels that BTC/USD could easily traverse if reversals upward develop. And, because of the recent momentum within the cryptocurrency, it isn’t hard to imagine that additional higher moves will emerge sooner rather than later. Speculators who want to pursue the bullish trend are making the logical choice it appears for BTC/USD, but they also need to understand that the cryptocurrency moves rapidly and with sizeable value changes.
BTC/USD has a habit of proving it is affected by behavioral sentiment generated by important price junctures. Two days ago, the 24000.00 value was approached and could not be sustained by speculators, but there is reason to suspect the number remains a target for traders. If the 24000.00 mark is punctured higher near term, it could set off a stampede of speculation in which the 25000.00 value is dreamed and sought. The 25000.00 mark may sound farfetched near term, but with BTC/USD’s history of rapid price fluctuations it is certainly possible.
Bitcoin Short-Term Outlook:
- Current Resistance: 23750.00
- Current Support: 23215.00
- High Target: 24150.00
- Low Target: 22985.00
