Trading Recommendations for the Cryptocurrency Market on October 29

[Ben Graham]

Bitcoin has slipped to around $112,500, but the chances for growth remain. Ethereum has also traded temporarily below $4,000 but has since reclaimed that level.

Volatility in the cryptocurrency market persists ahead of the upcoming Federal Reserve meeting, where a quarter-point interest rate cut is expected, which would help increase demand for risk assets, including cryptocurrencies.

Traders are awaiting clear signals from the central bank regarding the future trajectory of monetary policy. A reduction in interest rates is expected to ease the pressure on borrowers and stimulate economic growth, which could, in turn, lead to increased liquidity in the markets. Cryptocurrencies, as a class of assets with high potential returns, are likely to benefit from this. However, it's important to note that sentiment in the cryptocurrency market remains influenced by external factors such as geopolitical tensions, regulatory changes, and technological innovations. Nevertheless, the long-term prospects for cryptocurrencies remain positive. The growing recognition of cryptocurrencies by institutional investors, the development of decentralized finance, and the emergence of new applications of blockchain technology continue to attract attention to this market. A Fed interest rate cut could serve as an additional catalyst for cryptocurrency growth, but it's important to be mindful of risks and the need to diversify investment portfolios.

Regarding intraday strategy in the cryptocurrency market, I will continue to rely on significant pullbacks in Bitcoin and Ethereum, anticipating the ongoing medium-term bullish market.

As for short-term trading, the strategy and conditions are described below.

Bitcoin

Buy Scenario

Scenario 1: I plan to buy Bitcoin today at the entry point around $113,400, targeting a move to $114,300. At around $114,300, I will exit my purchases and immediately sell on the rebound. Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.

Scenario 2: I can buy Bitcoin at the lower boundary of $112,700, provided there is no market reaction to its breakout back towards $113,400 and $114,300.

Sell Scenario

Scenario 1: I will sell Bitcoin today upon reaching the entry point around $112,700, targeting a decline to $111,500. At around $111,500, I will exit my sales and immediately buy on the rebound. 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: I can sell Bitcoin at the upper boundary of $113,400, provided there is no market reaction to its breakout back towards the levels of $112,700 and $111,500.

Ethereum

Buy Scenario

Scenario 1: I plan to buy Ethereum today upon reaching the entry point around $4,038, targeting a rise to $4,098. At around $4,098, I will exit my purchases and immediately sell on the rebound. Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.

Scenario 2: I can buy Ethereum at the lower boundary of $4,001, provided there is no market reaction to its breakout back towards the levels of $4,038 and $4,098.

Sell Scenario

Scenario 1: I will sell Ethereum today upon reaching the entry point around $4,001, targeting a decline to $3,946. At around $3,946, I will exit my sales and immediately buy on the rebound. 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: I can sell Ethereum at the upper boundary of $4,038, provided there is no market reaction to its breakout back towards the levels of $4,001 and $3,946.

The material has been provided by InstaForex Company - www.instaforex.com