Bitcoin is hovering near the 20,400.00 mark as of this writing, but it has just spent the past few days struggling to sustain value over the 20,000.00 mark. Having touched a level of nearly 25,185.00 on the 15th of August, BTC/USD has suffered an incremental decline in value again, which has brought it to within sight of support levels which may be considered important by technical traders. Regarding speculators who believe behavioral sentiment is the most important part of the recipe, the 20,000.00 support ratio may be even more crucial.
Inability to Sustain 25,000.00 and Ensuing Decline a Reminder for BTC/USD Traders
As the month of August began for BTC/USD optimism was starting to seep into the mindset of some traders perhaps. The world’s most famous cryptocurrency had just toyed with the 24,000.00 mark at the end of July and started August comfortably above 23,000.00. The sun was starting to create romantic whispers of a renewed rally among influencers. The first two weeks of August had strong support and incrementally the value of BTC/USD managed to climb. Resistance levels appeared rather vulnerable.
From the 11th until the 15th when BTC/USD began to flirt with the 25,000.00 it was often pushed back, and when the price of Bitcoin did manage to penetrate the 25,000.00 with sustainable action for a day optimists may have become buyers. Yet the inability of BTC/USD to hold the 25,000.00 beyond the 14th and 15th proved important in a negative way too. By the end of the 15th BTC/USD was suddenly trading near 23,880.00. On the 16th and 17th Bitcoin did manage to climb above the 24,000.00 mark again, but then strong selling erupted and on the 18th BTC/USD was suddenly below 23,000.00.
- Bitcoin volatility remains dangerous and moves of more than 1,000.00 USD are commonplace.
- Traders who believe strong support levels are a speculative place to launch a buying position, still need to use extremely well-guarded stop losses as protection for their wagers.
The Return of BTC/USD Downward Momentum the Past Two Weeks may be a Warning
If BTC/USD is able to maintain the current support levels of 20,000.00 and bounce along them, some short term traders may be intrigued enough to launch buying positions slightly below the level to wager on upside momentum. However, BTC/USD remains wildly speculative and traders should remember that prices below 19,000.00 were seen in June and July. The notion that BTC/USD has sucked optimists into its fairyland of attainable profits and is about to deliver another nightmare lower cannot be discounted.
BTC/USD Outlook for September:
Speculative price range for BTC/USD is 16,000.00 to 26,000.00.
The recent decline of BTC/USD has created a technical range which is intriguing, particularly if it holds for a while, which is certainly not guaranteed, in fact the idea could prove wrong within a day of this article being published. The 19,700.00 to 21,000.00 may look like a tempting ground for short term speculators, but risk taking tactics need to be used at all times and the knowledge that Bitcoin has a habit of blowing technical considerations to pieces within seconds should be considered.
If, and it is a ‘Big If’, support levels hold near 19,900.00 some speculators may believe they can profit with buying positions that seek upwards momentum to within sight of the 20,500.00 level approximately. Bitcoin is currently near 20,400.00 and if it forms another wave higher and suddenly flirts with the 21,000.00 level this could attract additional speculators who think higher realms will be retested again and the 22,000 level and beyond are legitimate targets. These speculators cannot be blamed, but they should be extremely careful and cash in profits when able.
Cynical speculators of BTC/USD who view the current price movement as an alarm which suggests lower price action is going to ensue cannot be blamed. If BTC/USD falls below the 20,000.00 mark and starts to flirt with the 19,700.00 ratio and finds it difficult to rise above, this could be a signal that 19,000.00 will once again be challenged. If Bitcoin finds itself below 19,000.00 this could set off another wave of selling. It is possible that Bitcoin has a massive amount of folks holding until the sky falls, but if the 18,000.00 ratio were to be seen again, this could create another serious wave downwards which could produce loud moves lower.
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