Bitcoin has dropped back to its weekly low ahead of Federal Reserve Chair Jerome Powell's speech at Jackson Hole, while Ethereum appears to be holding up more confidently.
Clearly, the first cryptocurrency will display the most active reactions from traders. However, as experience shows, the market often changes direction contrary to the expectations and assessments of experts.
Many economists anticipate that Jerome Powell will maintain an aggressive stance at Jackson Hole, which could lead to a larger sell-off in the cryptocurrency market. But this could also be an opportunity for large players to take advantage of lower prices by opening long positions. Interestingly, there have been no major purchases this week, but there haven't been any sharp sell-offs with liquidations either, so there's still more to come.
It's also important to understand the typical movement of Bitcoin during fundamental data releases. If the market reacts with a short-term rally, it's far from certain that this will lead to sustained growth, as major sell-offs have often followed such spikes. Retail investors (or "hamsters") will likely buy, while large players may use this as an opportunity to sell, pushing those using high leverage into margin calls.
In any case, it's better to wait for market reactions and buy Bitcoin and other crypto assets on a dip at more attractive prices or wait for the entrance of large buyers rather than rushing into long positions on news and later watching the market move relentlessly against you.
As for the intraday strategy on the cryptocurrency market, I will continue to base my actions on any significant dips in Bitcoin and Ethereum, betting on the continuation of the bullish market in the medium term, which is still intact.
Regarding short-term trading, the strategy and conditions are outlined below.
Bitcoin
Buy scenario
Scenario #1: I will buy Bitcoin today if it reaches the entry point around $113,100, targeting a rise to $114,600. I will exit the buy position around $114,600 and immediately sell on a rebound. Before buying on the breakout, ensure that the 50-day moving average is below the current price, and the Awesome Oscillator is above zero.
Scenario #2: Bitcoin can be bought from the lower border around $112,100 if there's no market reaction to the breakout in the opposite direction, aiming for $113,100 and $114,600.
Sell scenario
Scenario #1: I will sell Bitcoin today if it reaches the entry point around $112,100, targeting a drop to $110,850. I will exit the sell position around $110,850 and immediately buy on a dip. Before selling on the breakout, ensure that the 50-day moving average is above the current price, and the Awesome Oscillator is below zero.
Scenario #2: Bitcoin can be sold from the upper border around $113,100 if there's no market reaction to the breakout in the opposite direction, targeting $112,100 and $110,850.
Ethereum
Buy scenario
Scenario #1: I will buy Ethereum today if it reaches the entry point around $4,323, targeting a rise to $4,439. I will exit the buy position around $4,439 and immediately sell on a rebound. Before buying on the breakout, ensure that the 50-day moving average is below the current price, and the Awesome Oscillator is above zero.
Scenario #2: Ethereum can be bought from the lower border around $4,272 if there's no market reaction to the breakout in the opposite direction, targeting $4,323 and $4,439.
Sell scenario
Scenario #1: I will sell Ethereum today if it reaches the entry point around $4,272, targeting a drop to $4,177. I will exit the sell position around $4,177 and immediately buy on a dip. Before selling on the breakout, ensure that the 50-day moving average is above the current price, and the Awesome Oscillator is below zero.
Scenario #2: Ethereum can be sold from the upper border around $4,323 if there's no market reaction to the breakout in the opposite direction, targeting $4,272 and $4,177.
