Bitcoin continues to languish near dangerous lows, after flirting with a brief rally late in the second week of December.
With the arrival of the new year, the BTC/USD pair will start 2023 under the same shadows. Time has given no solace to Bitcoin bulls who keep dreaming of higher values than were promised by influencers and crypto evangelists.
BTC/USD continues to trade at the lower depths of its range and is currently testing the 16,600.00 ratios. The world’s most famous cryptocurrency is now often used as a storyline in jokes when referring to the world of digital assets and all the things that have gone wrong.
Technical Analysts May Have the Sense of a Bottom in BTC/USD
Some potential speculators are wondering if now is a good time to buy Bitcoin because it is so “cheap”, and because it has produced what appears to be supported since late October. Anyone who answers this question with a yes should be treated with skepticism.
At best, BTC/USD remains just a speculative asset, having no intrinsic economic value. If you buy Bitcoin with long-term aspirations of great wealth, you might want to take a look at all the people who have bought BTC/USD at higher prices and lost huge sums of money.
It is reasonable if you are looking for a technical perspective as a potential bullish buyer, and are a day trader looking for quick profit potential. However, you must admit that, as a trader, you are playing with volatile fire.
Events in the world of cryptocurrency finance remain poor in terms of news flow, and positive stories are unlikely to emerge in the coming weeks. The 16,500.00 regions could be important as support for short-term buyers, but if Bitcoin turns vulnerable and the price sustains below, there are many reasons to suspect that the Bitcoin price could find an “express train” at lower depths.
BTC/USD Outlook for January
Bitcoin miners need a high BTC/USD price to make their transaction features worthwhile; they also need a higher Bitcoin price for BTC mining to be profitable. More importantly, exchanges like finance serve as the backbone for traders of BTC/USD and other cryptocurrencies. A lack of confidence in the stock markets is very bad for market conditions.
If Bitcoin falls below 16,000.00 in the coming weeks and shows a sustained ability to stay below this ratio, it could make BTC/USD holders very nervous and start forcing them to sell. If the selling turns aggressive, it doesn’t take much to think that BTC/USD may drop to new lows and surpass the depths seen in mid-November. A value for Bitcoin below 15,000.00 is not difficult to imagine.
If a trader wants to bet on pullbacks to the upside, it is very possible that profits can be achieved. However, the bet must include a tight take-profit target, a strict stop-loss mechanism, as well as good luck in choosing the right time to place the bet for the day.
By Audy Castaneda
