Trading Recommendations for the Cryptocurrency Market on December 5

[Ben Graham]

Bitcoin has slightly pulled back from the $94,000 level and is currently trading around $92,000, maintaining the potential for a new wave of growth. Ethereum also remains above the $3,100 mark, which is very positive.

Yesterday, the CEO of BlackRock stated that some sovereign funds are already buying BTC. The November correction provided a great opportunity for large purchases aimed at accumulation for the long term.

This statement is undoubtedly an important signal for the crypto market. BlackRock, the world's largest investment company, has a significant influence on institutional investor sentiment. The confirmation of interest from sovereign funds, which control vast state assets, in Bitcoin indicates a shift in the perception paradigm of cryptocurrencies. Previously, Bitcoin was mainly viewed as a speculative asset or a means of diversifying a small portfolio. However, it now seems to be becoming part of long-term investment strategies for states.

It is clear that the November correction, although painful for many traders, provided an opportunity to accumulate BTC at more attractive prices. Sovereign funds seeking stable, long-term capital growth could have taken advantage of this situation. Their planning horizon is much broader than that of most retail investors, allowing them to withstand the volatility inherent in the crypto market.

Regarding intraday strategies in the cryptocurrency market, I will continue to operate on any significant pullbacks in Bitcoin and Ethereum, anticipating a continuation of a bullish market in the medium term, which remains intact.

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

Bitcoin

Buy Scenario

• Scenario No. 1: I will buy Bitcoin today upon reaching an entry point around $92,300, aiming for growth toward $93,400. Around $93,400, I will exit my purchases and sell immediately on the bounce. Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome indicator is above zero.
• Scenario No. 2: Bitcoin can be bought at the lower boundary at $91,700 if there is no market reaction to its breakout back down to $92,300 and $93,400.

Sell Scenario

• Scenario No. 1: I will sell Bitcoin today upon reaching an entry point around $91,700, aiming for a drop to $90,300. Around $90,300, I will exit my sales and buy immediately on the bounce. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is below zero.
• Scenario No. 2: Bitcoin can be sold from the upper boundary at $92,300 if there is no market reaction to its breakout back down to levels of $91,700 and $90,300.

Ethereum

Buy Scenario

• Scenario No. 1: I will buy Ethereum today upon reaching an entry point around $3,177, aiming for growth toward $3,238. Around $3,238, I will exit my purchases and sell immediately on the bounce. Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome indicator is above zero.
• Scenario No. 2: Ethereum can be bought at the lower boundary at $3,144 if there is no market reaction to its breakout back down to $3,177 and $3,238.

Sell Scenario

• Scenario No. 1: I will sell Ethereum today upon reaching an entry point around $3,144, aiming for a drop to $3,095. Around $3,095, I will exit my sales and buy immediately on the bounce. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is below zero.
• Scenario No. 2: Ethereum can be sold from the upper boundary at $3,177 if there is no market reaction to its breakout back down to levels of $3,144 and $3,095.

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