Bitcoin demonstrated a fairly strong move on the breakout of the $95,600 level, which I mentioned in my morning forecast, leading to a decline toward the $95,000 area. However, we fell short of the target level. A sell setup was also triggered on Ethereum, but the expected major drop did not occur. After the price returned above the $2,669 level, I exited the market.
While the cryptocurrency market attempts to find direction—albeit leaning more towards a bearish scenario—traders are increasingly bracing for a drop in Solana (SOL). Investor sentiment has sharply deteriorated due to the minting of a large number of memecoins on the Solana network.
According to data from Coinalyze, the long-to-short ratio for SOL on crypto futures exchanges has dropped from 4 to 2.5, indicating a shift toward a bearish trend. Additionally, the ratio of short to long positions has risen to 4:1 on several major global cryptocurrency exchanges, reflecting a predominance of bearish sentiment. Currently, SOL has already lost over 6% in a single day and remains under selling pressure.
One of the key drivers of this sharp bearish sentiment was the collapse of the LIBRA token, which lost its market capitalization of $4.4 billion within just a few hours.
However, it is important to note that the cryptocurrency market has faced similar situations many times before. Historically, after the pressure and investor panic subside, the market has always returned to growth.
Intraday crypto market strategy
Moving forward, I will continue to rely on major dips in Bitcoin and Ethereum, anticipating the continuation of a bullish market trend in the medium term, which remains intact.
The short-term trading strategy and conditions are detailed below.
Bitcoin
Buy scenarios
Scenario #1: I will buy Bitcoin today upon reaching the entry point around $96,000, targeting a rise to $97,200. I plan to exit purchases and sell immediately on a bounce at $97,200. Before entering on a breakout, I must ensure that the 50-day moving average is below the current price and the Awesome Oscillator is above zero.
Scenario #2: An alternative buy opportunity is from the lower border of $95,500, provided there is no market reaction to a breakdown. The targets for the rebound will be $96,000 and $97,200.
Sell scenarios
Scenario #1: I will sell Bitcoin today upon reaching the entry point around $95,500, aiming for a drop to $94,400. I plan to exit short positions and buy immediately on a bounce at $94,400. Before entering on a breakout, I must ensure that the 50-day moving average is above the current price and the Awesome Oscillator is below zero.
Scenario #2: Another selling option is from the upper border of $96,000, provided there is no market reaction to a breakout. The targets for the downward move will be $95,500 and $94,400.
Ethereum
Buy scenarios
Scenario #1: I will buy Ethereum today upon reaching the entry point around $2,712, targeting a rise to $2,792. I plan to exit buy positions and sell immediately on a bounce at $2,792. Before entering on a breakout, I must ensure that the 50-day moving average is below the current price and the Awesome Oscillator is above zero.
Scenario #2: An alternative buy opportunity is from the lower border of $2,676, provided there is no market reaction to a breakdown. The targets for the rebound will be $2,712 and $2,792.
Sell scenarios
Scenario #1: I will sell Ethereum today upon reaching the entry point around $2,676, aiming for a drop to $2,603. I plan to exit short positions and buy immediately on a bounce at $2,603. Before entering on a breakout, I must ensure that the 50-day moving average is above the current price and the Awesome Oscillator is below zero.
Scenario #2: Another selling option is from the upper border of $2,712, provided there is no market reaction to a breakout. The targets for the downward move will be $2,676 and $2,603.
