FX.co ★ Trading Recommendations for the Cryptocurrency Market on October 17

Bitcoin continues actively attempting to rise, but it's getting harder each day. Ethereum has entirely given up on such efforts, stopping near a significant resistance level. On one hand, this is concerning and may affect demand, but on the other hand, the market cannot grow continuously without a pause. A short break or even a correction should be beneficial if it doesn't become a new bearish trend.

Meanwhile, the Italian government has decided to change its tax regulations in the cryptocurrency sector. Italy's Deputy Finance Minister Maurizio Leo announced that the government will increase the capital gains tax on cryptocurrencies, such as Bitcoin, from 26% to 42%. According to reports, the Italian cabinet made this decision as this "phenomenon" is spreading faster and faster.

However, given the existing regulation of the cryptocurrency sector in the EU, it is unlikely this will significantly support Italy's debt-ridden budget. In any case, this will not affect the demand for cryptocurrency assets.

As for the intraday strategy on the cryptocurrency market, I will continue to rely on any major dips in Bitcoin and Ether with expectations of the bull market's continuation in the medium term, which is still intact.

The short-term trading strategy and conditions are outlined below.

Bitcoin

Buy Scenario:

I plan to buy Bitcoin today when it reaches the entry point of around $67,465, aiming for growth to $68,910. Around $68,910, I plan to exit the buy position and sell immediately on a rebound. Before buying on the breakout, it's best to ensure that the Stochastic indicator is near the lower boundary, around level 20.

Sell Scenario:

I plan to sell Bitcoin today when it reaches the entry point of around $67,037, aiming for a drop to the level of $65,480. Around $65,480, I plan to exit the sell position and buy immediately on a rebound. Before selling on the breakout, ensure that the Stochastic indicator is near the upper boundary, around level 80.

Ethereum

Buy Scenario:

I plan to buy Ethereum today when it reaches the entry point of around $2,637, aiming for growth to the level of $2,695. Around $2,695, I plan to exit the buy position and sell immediately on a rebound. Before buying on the breakout, ensure that the Stochastic indicator is near the lower boundary, around level 20.

Sell Scenario:

I plan to sell Ethereum today when it reaches the entry point of around $2,604, aiming for a drop to the level of $2,543. Around $2,543, I plan to exit the sell position and buy immediately on a rebound. Before selling on the breakout, ensure that the Stochastic indicator is near the upper boundary, around level 80.