(MENAFN- Daily Forex) As the New Year begins btc/usd will start 2023 under the same dark shadows.
Time has delivered no comfort for bitcoin bulls who continue to dream of higher values that were promised by influencers and crypto evangelists. BTC/USD continues to trade in the lower depths of its range and it is testing the 16,600.00 ratio as of this writing. The world's most famous Cryptocurrency is often used as a punch line in jokes now, when referring to the digital asset world and all the things that have gone wrong.Technical Analysts may have the Perception of a Bottom in BTC/USD There are some potential speculators who are asking the question is now a good time to buy Bitcoin because it is so 'cheap' and because it has produced what appears to be support since the end of October.
Anyone who answers this question with a yes should be judged with skepticism.
At best BTC/USD remains only a speculative asset, which has no intrinsic economic value . Folks, it doesn't get much clearer than this, if you buy Bitcoin with long time aspirations of great wealth, you may want to take a look at all the people who have bought BTC/USD at higher prices and have lost great sums of money.
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If you are looking for technical perspective as a potential bullish buyer, and are a day trader looking for the potential of quick profits, fine, but accept that you as a trader are playing with volatile fire.
Developments in the world of cryptocurrency finance remain poor regarding news flow and it is unlikely positive stories are about to emerge in the coming weeks. The 16,500.00 region could prove important as support for short term buyers, but if Bitcoin proves vulnerable and price is sustained below there is plenty of reason to suspect the price of Bitcoin could find an 'express train' to lower depths.
Wagering on BTC/USD should be done with extreme caution and very conservative leverage. Traders should know all the costs before they enter any transaction. Trading in BTC/USD is bouncing suspiciously close to very important support at this moment, if the floor collapses, a falling price could crush speculators who are not using risk management.
Quiet Bitcoin Market should be viewed with Respect and Fear If you came to this article looking to be soothed regarding the outlook for BTC/USD you have come to the wrong place.
If support near the ratios of 16,500.00 to 16,200.00 begin to be flirted with and then proves weak, traders who have been calmed by quiet market conditions could find a storm about to erupt.
While BTC/USD has traded in a tight price range the past month, the results certainly do not mean they will continue. Consolidation is often a sign that a break out is about to occur. Who among the Bitcoin influences wants to bet a large sum of money on the breakout happening to the upside?BTC/USD Outlook for January:
Speculative price range for BTC/USD is 13,670.00 to 18,200.00.
Questions remain about transparency in the cryptocurrency exchange world . While Bitcoin influencers will say this has nothing to do with the fundamentals of BTC, they actually are wrong. Bitcoin miners need a high price for BTC/USD to make their transaction functions worthwhile to perform; they also need a higher price for Bitcoin to allow for profitable mining of BTC. And importantly the exchanges like finance serve as the backbone for traders of BTC/USD and other cryptocurrencies. A lack of trust in exchanges is very bad for market conditions.
If Bitcoin falls below the 16,000.00 in the coming weeks and shows a sustained ability to remain under this ratio, it could make folks holding onto BTC/USD very nervous and start to force them to sell . If selling becomes aggressive, it doesn't take much to think BTC/USD can fall to new lows and past depths seen in mid-November. A value for Bitcoin below the 15,000.00 price is not hard to imagine.
If a trader who wants to gamble and says they believe support is strong and wants to pursue upside, they still cannot be blamed . In fact, yes, upside momentum was found in December when BTC/USD climbed from about 16,800.00 to over 18,000.00 in a few days. However the problem is timing this occurrence as a trader. If you want to bet on upside reversals happening, it could very well take place. However, the bet needs to include a narrow take profit goal and a strict stop loss mechanism, and a lot of luck when choosing the correct time to place your day wager.
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