FX.co ★ Trading Recommendations for the Cryptocurrency Market on October 9

Bitcoin and Ethereum continue to trade within a range. On the one hand, this is positive for future upward prospects, as consolidation often supports trend development. However, cryptocurrency buyers may face challenges if we do not see new local highs soon.

Bitcoin traded sluggishly yesterday, between key moving averages amid heightened volatility in the US bond market and a sharp drop in Chinese stocks. The leading cryptocurrency by market capitalization held above $62,000, where it remains at the time of writing. Prices are in a tight range between the 200-day simple moving average (SMA) at $63,550 and the support level of the 50-day SMA at $60,819.

The increased volatility in treasury bonds often leads to risk aversion, which harms the cryptocurrency market since such conditions favor the US dollar. Nevertheless, the observed pause is a good thing, provided that bulls quickly buy up any significant dips.

For intraday strategy in the cryptocurrency market, I will focus on any significant pullbacks in Bitcoin and Ethereum, expecting the continuation of the bullish market in the medium term, which remains intact.

For short-term trading, the strategy and conditions are outlined below.

Bitcoin

Buy Scenario

Today, I plan to buy Bitcoin upon reaching the entry point around $62,570, targeting a rise to the $63,515 level. Around $63,515, I plan to exit purchases and immediately sell on a rebound. Before buying on a breakout, it is best to ensure that the Stochastic indicator is near the lower boundary, around the 20 level.

Sell Scenario

Today, I plan to sell Bitcoin upon reaching the entry point around $62,250, targeting a decline to the $61,510 level. Around $61,510, I plan to exit sales and immediately buy on a rebound. Before selling on a breakout, ensure the Stochastic indicator is near the upper boundary, around the 80 level.

Ethereum

Buy Scenario

Today, I plan to buy Ethereum upon reaching the entry point around $2,455, targeting a rise to the $2,499 level. Around $2,499, I plan to exit purchases and immediately sell on a rebound. Before buying on a breakout, ensure the Stochastic indicator is near the lower boundary, around the 20 level.

Sell Scenario

Today, I plan to sell Ethereum upon reaching the entry point of around $2,435, targeting a decline to the $2,387 level. Around $2,387, I plan to exit sales and immediately buy on a rebound. Before selling on a breakout, ensure the Stochastic indicator is near the upper boundary, around the 80 level.