Bitcoin has been able to gain slightly in the past day, yet the world’s largest digital currency remains within sight of important support price levels.
- Having touched the 38,500.00 vicinity on Tuesday, BTC/USD has come off lows and is now traversing slightly above the 40,000.00 USD level.
- Since the start of U.S ETFs being allowed to trade BTC/USD has not produced a wild ride higher. Influencers certainly remain adamant that Bitcoin is the future, but a large group of people remain skeptical.
- The price of BTC/USD in the past week has produced a downwards slope.
In fact since the launch of the U.S ETF trading for BTC/USD the price has incrementally declined. While yesterday’s push higher has been solid, the 40,000.00 mark likely remains a nervous juncture for BTC/USD bullish traders. The move below the 39,000.00 level earlier this week was not able to be sustained for a long time, but the inability of BTC/USD to ignite a wave of bullish momentum may be making day traders anxious.
With the introduction of Bitcoin ETFs in the U.S, complex dynamics of BTC/USD trading have grown. Speculators who like to wager on the digital asset for short term bets now have much more data they need to investigate, if they want to bet on fundamental insights. It is not only price action and positions being taken on cryptocurrency exchanges that need to be watched now, but the potential of large players placing their bets on Bitcoin via ETFs has added to the list of information traders would have to investigate – this if they can get their hands on data like long and short positions on the ETFs.
Having said the above, the actual price of BTC/USD has shown an almost polite price quality. Yes, the downturn early this week was attention grabbing as values challenged support levels not seen since early December, but volatility in BTC/USD may actually have become calmer it appears. Now the question is if BTC/USD will initiate a speculative run upwards which will ignite stronger buying? And will the price of BTC/USD remain calm?
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- If the price of BTC/USD can sustain the 40,000.00 in the near-term and start to challenge the 40,200.00 to 40,000.00 values this may spur on some bullish speculative wagers.
- However if the 40,000.00 is again penetrated lower, bearish gamblers may believe additional downside is going to be seen in the near-term, serving as an inflection price for behavioral sentiment.
Bitcoin is now in a battle between its backers and its skeptics. The digital asset can be wagered on regarding psychological price levels according to perspectives based on what are deemed important technical values. The 40,000.00 ratio could prove to be an important magnate. If the level falters and a retest of this Tuesday’s lows are seen, additional lower values may be demonstrated quickly.
Current Resistance: 40,125.00
Current Support: 39,975.00
High Target: 40,560.00
Low Target: 38,990.00
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