BTC/USD has lost more than six thousand USD in the past two and a half days of trading and speculators may be enticed to look for more lows.
- Bitcoin is behaving like Bitcoin is known too. While that may not be an earth shattering statement, a look at a weekly chart shows the digital asset has dropped more than six thousand USD in the past two and a half days.
- This doesn’t mean BTC/USD is going to continue its slide, it simply points out that Bitcoin remain volatile, but you already knew that.
- However, what may intrigue technical traders of BTC/USD is a look at six month chart. At this moment BTC/USD is near 57,425.
Not to rain on the parade of Bitcoin bulls, but there is important support which has begun to cast a shadow after the downturn in value the past couple of days. And let’s be clear, this doesn’t mean BTC/USD is going to suddenly challenge the lower depths in the near-term. However, if the 56,000 realm is penetrated lower it could cause some additional bedlam in Bitcoin.
If Bitcoin Had Intrinsic Value it Could Claim to be Gold
If BTC/USD begins to hit the ratio of 56,000 it would be testing a mark not seen since late February. If support proves to be vulnerable around this lower price, the next obvious technical level for BTC/USD would become the 52,500 ratio, which was essentially tested from the 14th until the 26th of February.
Perhaps sunnier days are in favor of BTC/USD never experiencing volatile crashes in value again. But perhaps the drop of more than six thousand USD recently, is a reminder this speculative asset with no ability to prove it has intrinsic value will always remain dangerous. Betting on upside movement is possible for those who believe Bitcoin will continue to go to higher realms in the long term and eventually shine like gold. However, folks who believe that BTC/USD has a repeated history of creating dynamic downturns that tests uncomfortable lows are welcome to sell the digital asset.
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Correlations for Bitcoin to the USD and U.S Federal Reserve
For the influencers among us who want to correlate Bitcoin to USD and other assets please feel free to do so. But for you to be believed you should come up with scientific fact that Bitcoin has real value first. When you can do this, please let me know. Until substantive proof of value can be delivered BTC/USD remains what it is: a purely speculative asset created by humans. Yes, you could argue that all money is a speculative asset created by humans and I would have to listen to this point.
- Bearish speculators who want to bet on lower momentum and a test of key support levels which are starting to come within sight should be careful. Use risk management please.
- Bullish optimists who believe BTC/USD is oversold and now is a good time to bet on a reversal higher, well, I wish you plenty of luck. Again, risk management is advised.
- Simply put Bitcoin remains a speculative asset that day traders can wager upon. If you are a long-term holder of Bitcoin and simply believe holding a few coins as a speculative gamble is worth it because you have deep pockets be my guests.
Bitcoin Short Term Outlook:
Current Resistance: 58,465
Current Support: 57,000
High Target: 60,800
Low Target: 50,600
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