BTC/USD continues to be like gasoline as speculators wager, watching for a flame to ignite the next burst of action.
BTC/USD is not for emotionally weak speculators. Wagering on the asset takes not only courage but psychological endurance to withstand the constant need for vigilance as Bitcoin trades fast and takes no prisoners. A positive move in a chosen speculative direction can feel life-affirming in BTC/USD, while a move in the wrong direction can make a bad day seem like it is a year.
BTC/USD continues to move fast, and in the last week of trading after hitting a record high on the 21st of February, it has seen a decline. A height of nearly 58300.00 was reached at the end of the third week of February, but BTC/USD is now traversing above an important support level. If BTC/USD continues to traverse downward and puncture the 42400.00 level below, it will set off some alarms bells. However, speculators of Bitcoin are accustomed to alarm bells sounding at all times by now, so this is a norm they might be willing to accept.
Technically, projecting a one-month range for BTC/USD is a bit like throwing projectiles at a dartboard blindfolded and hoping for the best. Behavioral sentiment is hugely important, but so is the force of unexpected elements which can occur from ‘whales’ deciding to buy into the market or cash out. Bitcoin broke through the key psychological mark of 50000.00 very recently, and this should not be forgotten. The rush towards record highs only last week will certainly be hailed by its backers as an indication that BTC/USD has further room to climb. The cry of “hold on and do not sell” is a common rallying cry.
However, the past week has also produced a decline of nearly 15000.00 for BTC/USD and this cannot simply be made to disappear. Bitcoin may herald the future according to its backers, but it continues to produce a sea of volatility, and its loss of momentum the past week may have skeptics asking if we are about to enter a dangerous bearish cycle for BTC/USD, as trouble may be brewing.
Speculators who wish to be part of the next wave upwards and buy BTC/USD are advised to be cautious while using leverage and risk management. Traders are encouraged to use technical support levels to buy BTC/USD if they feel a bullish surge is about to emerge. The question regarding direction for BTC/USD in the short term is rather difficult to answer with a straight face. There is no denying the powerful upward trend BTC/USD has enjoyed the past half year.
The month of February saw BTC/USD begin with a value of nearly 33000.00 on the 1st of the month. There is no doubt Bitcoin made a profit when the month of February is looked at with a one-month perspective from beginning to end, but the ride has been violent and speculators need to understand the dynamics. While buying on technical support levels will take nerves of steel, it may be even harder to speculate on downside moves with BTC/USD. The cryptocurrency continues to prove it has the capability to reverse quickly and crunch its doubters.
BTC/USD Outlook for March:
A very speculative price range for BTC/USD may be between 31360.00 and 65000.00.
A key support area could prove to be the 41500.00 mark. If this value fails to hold, the 39700.00 level could prove the next target. If this lower support juncture trembles, brave speculators may believe a test of 34500.00 and below could develop.
Resistance near 48800.00 should be monitored; if it is penetrated higher, a quick push towards the 50000.00 ratio could ignite. If the 50000.00 value can be sustained, another leg higher with a test towards the 52000.00 could be the next logical target. If the 55000.00 mark is brushed aside, BTC/USD could fight towards its record highs near 58300.00 and beyond.