BTC/USD is within an uneasy price range as it continues to linger unsteadily, leaving speculators with questions regarding their perceptions.

BTC/USD is near the 30,400.00 ratio as of this morning. Trading for the moment almost appears to be tranquil for Bitcoin, but as speculators know, the potential for sudden volatility and price moves of one thousand USD within fast durations is always possible. The thought that BTC/USD is going to continue to produce polite movements in the near term will probably be disproved abruptly.

BTC/USD has seen a dramatic loss of value the past week, but the ability of BTC/USD to climb above the 30,000.00 and sustain this level this morning should get the attention of traders.  However, the question regarding this development in the short term, is where technical perceptions lead the decision making process of traders. Having suffered from what has become a notorious bearish trend and having demonstrated the ability to literally crash to long term lows in the blink of an eye, anyone considering trading Bitcoin as a speculative wager has to be prepared for the chance of chaos.

The broad cryptocurrency market continues to produce extreme volatility and it has mirrored in many ways, the results from equity indices such as the NASDAQ 100.  However the results in BTC/USD and its major counterparts in the digital asset world are producing more destructive percent changes of value, meaning that short term traders of cryptocurrencies including Bitcoin need to use secure risk taking tactics.

It is likely in the near term that BTC/USD will remain volatile and that nervous results will continue to be demonstrated with sudden fluctuations.  The current price of BTC/USD has shown some stability and incrementally has increased the past half day, and in recent hours. Technically traders need to decide if the move higher in BTC/USD can be sustained and until higher price levels are attained, many speculators may not want to pursue potential upside momentum. Yesterday’s high in BTC/USD did trade above 31,000.00 rather comfortably, but it quickly saw a reversal.

Traders of BTC/USD are urged to use entry level price orders. The use of take profit and stop loss orders should be a tactical decision too, this in order to take advantage of the price range Bitcoin is now trading. Speculators who are still skeptical of BTC/USD and its ability to sustain a higher climb might want to be sellers around technical resistance and look for quick hitting reversals lower. If BTC/USD is not able to break through the 31,000.00 ratio near term and sustain this value, this may be a negative signal for Bitcoin.

Bitcoin Short-Term Outlook

Current Resistance: 30506.00

Current Support: 30202.00

High Target: 31495.00

Low Target: 28639.00

There are a lot of concerns currently, and therefore it is difficult to see markets like crypto take off.

Bitcoin has pulled back a bit during the trading session on Thursday to reach the $40,000 level again. At this point, the $40,000 level appears to be a bit of a magnet for price, and perhaps more importantly over the last couple of days, a bit of support. As long as we can stay above there, it is likely that we will continue to see the market try to recover and go higher. That being said, the market looks very likely to be noisy to say the least.

If we were to break down below the inverted hammer from the Tuesday session, that could kick off a bit of selling pressure, perhaps reaching as low as $37,500. That is an area that has been supported multiple times, and therefore people will be looking at that level as the next potential buying opportunity. If we break down below there, I do not necessarily believe that the $35,000 level is going to hold this time, and I would anticipate a bigger breakdown at that point.

Remember, above all things Bitcoin is a risk asset. This is how institutions tend to look at it, and that is what matters. It is not retail that drives this market as much anymore, but the very people that this market was supposed to take out of the mix. Institutional money brings a bit of stability to the market, but it also brings the same type of attitude that you see in other things like the stock market. Quite frankly if the large institutions do not want to take a lot of risk in the markets, they will be bothered with buying Bitcoin.

That being said, if we were to break down below the $35,000 level, I suspect that we will do all the announce the upcoming “crypto winter.” On the other side of the coin, if we were to turn around a break above the 200 Day EMA, we will more than likely make a move to reach the $50,000 level, but I think it is going to take quite a bit of “risk-on behavior” around the world to make that happen right now. There are a lot of concerns currently, and therefore it is difficult to see markets like crypto take off. This is not just the Bitcoin problem, this is a risk appetite problem.