The radical moves of BTC/USD are not new and no cryptocurrency trader should ever be surprised by the ability of Bitcoin to move a thousand dollars without a moment’s notice. BTC/USD has enjoyed a strong bullish month of trading and highs of nearly 48200.00 came within sight on the 14th and 15th of August.
However, since those highs BTC/USD has dropped in value. As of this writing the king of the cryptocurrencies is near the 44750.00 level (predicated on the warning that a trader should double check the price as they are reading this article because the price is almost certain to have jumped in either direction).
The question speculators now need to ask is if the selling that has developed in the short term for BTC/USD is profit taking which could be a reason for the value to drop as traders’ cash out their winnings. Or is the lower value being produced now due to unease in the market based on the notion that the move higher since the lows of nearly 29000.00 on the 20th of July and the subsequent rise, simply need to take a break and consolidate. In other words let the cryptocurrency market catch its collective breath before another leg upwards occurs.
And then there is the argument that the recent move higher made the past month has been a false flag and that BTC/USD is about to resume a bearish trajectory. However, for signs that this is taking place BTC/USD would not only have to break its current support levels, but it would have to build downward velocity and fall through the 43700.00 juncture, and then the 42100.00 level in order to seriously do damage to its current price range.
Trading in BTC/USD carries known risks; speculators who enjoy wagering on Bitcoin and its trend need to understand the danger. If BTC/USD is able to withstand its current short term bearish stance and does not break important support below, the current values may be tempting to look at as a buying opportunity in order to catch another leg upwards which could develop. If a trader can buy BTC/USD on slight reversals lower and practice patience, while not over leveraging their positions, they may be able to find profitable upside momentum near term.
Bitcoin Short Term Outlook:
Current Resistance: 45000.00
Current Support: 44600.00
High Target: 45500.00
Low Target: 43770.00
