Bitcoin and Ether made significant gains on Thursday, but is everything as positive as it seems at first glance?
Cryptocurrencies rose on Thursday, breaking the correction that began after Bitcoin failed to recover to $70,000 earlier in the week. The CoinDesk 20 index, which tracks the 20 largest cryptocurrencies by market capitalization, excluding stablecoins and exchange tokens, increased by over 2.7% in the past 24 hours. Uniswap and Bitcoin Cash led the way, each gaining more than 5%. Solana also posted significant gains, aiming directly for yearly highs.
However, at the time of writing, Bitcoin was trading at $68,100, while Ether retreated to the $2,490 area, which is a somewhat concerning signal.
If these trading instruments do not update their monthly highs in the coming days, buyers may face significant challenges as the risks of a larger correction will increase substantially. Additionally, market nervousness remains due to the U.S. presidential elections, where any poll favoring Kamala Harris could trigger a significant sell-off in the cryptocurrency market, making it difficult to expect a high probability of reaching new yearly highs.
As for the intraday strategy in the cryptocurrency market, I will focus on capitalizing on any significant dips in Bitcoin and Ether, aiming to maintain the bullish market trend in the medium term, which remains intact.
Details of the short-term trading strategy are outlined below.
Bitcoin
Buy Scenario:
I plan to buy Bitcoin today if it reaches the entry point around $68,270, with a target of rising to $69,305. At the $69,305 level, I will exit from buying and sell immediately on the rebound. Before buying on a breakout, it's best to ensure that the Stochastic indicator is near the lower boundary, around the 20 level.
Sell Scenario:
I plan to sell Bitcoin today if it reaches the entry point around $67,560, targeting a decline to $66,449. At the $66,449 level, I will exit from selling and buy immediately on the rebound. Before selling on a breakout, ensure the Stochastic indicator is near the upper boundary, around the 80 level.
Ethereum
Buy Scenario:
I plan to buy Ether today if it reaches the entry point around $2,513, with a target of rising to $2,569. At the $2,569 level, I will exit from buying and sell immediately on the rebound. Before buying on a breakout, ensure the Stochastic indicator is near the lower boundary, around the 20 level.
Sell Scenario:
I plan to sell Ether today if it reaches the entry point around $2,478, targeting a decline to $2,431. At the $2,431 level, I will exit from selling and buy immediately on the rebound. Before selling on a breakout, ensure the Stochastic indicator is near the upper boundary, around the 80 level.