Pressure on Bitcoin and Ethereum returned sharply, and hopes of breaking the $70,000 mark disappeared following an article about a criminal investigation into stablecoin issuer Tether.
Despite a relatively active end to the week and the growth in the crypto market, the situation changed on Friday after the Wall Street Journal reported that the U.S. is investigating Tether's activity regarding sanctions violations and anti-money laundering rules.
It's worth noting that stablecoins are a type of cryptocurrency pegged to another asset, usually the U.S. dollar. With a market cap of over $120 billion, Tether is currently the most widely used stablecoin.
Shortly after this news, Tether's CEO, Paolo Ardoino, stated that the WSJ was exaggerating the situation. Ardoino mentioned there were no signs Tether was under investigation. Tether later released a statement refuting the WSJ article.
While the cryptocurrency market rebounded over the weekend, investor sentiment and bullish potential were dampened.
For today's intraday strategy in the cryptocurrency market, I will continue to focus on major dips in Bitcoin and Ethereum, aiming to maintain the medium-term bullish market trend.
The short-term trading strategy and conditions are outlined below.
Bitcoin
Buy Scenario
I plan to buy Bitcoin today if it reaches the entry point around $67,970, aiming to rise to $69,305. Around $69,305, I'll exit the buy position and sell immediately on a bounce. Before buying on a breakout, confirm that the Stochastic indicator is near the lower boundary, around level 20.
Sell Scenario
I plan to sell Bitcoin today if it reaches the entry point around $67,560, targeting a fall to $66,449. Around $66,449, I'll exit the sell position and buy immediately on a bounce. Before selling on a breakout, ensure the Stochastic indicator is near the upper boundary, around level 80.
Ethereum
Buy Scenario
I plan to buy Ethereum today if it reaches the entry point around $2,478, aiming to rise to $2,584. Around $2,584, I'll exit the buy position and sell immediately on a bounce. Before buying on a breakout, confirm that the Stochastic indicator is near the lower boundary, around level 20.
Sell Scenario
I plan to sell Ethereum today if it reaches the entry point around $2,451, targeting a fall to $2,357. Around $2,357, I'll exit the sell position and buy immediately on a bounce. Before selling on a breakout, ensure the Stochastic indicator is near the upper boundary, around level 80.
