Trading Recommendations for the Cryptocurrency Market on December 29

[Ben Graham]

Bitcoin has returned to the $90,000 region today, but continues to struggle to surpass it. Ethereum has also climbed back to the $3,000 mark. However, whether this bullish momentum can be sustained at the beginning of the week is a complex question.

The pre-New Year rally in global markets has buoyed American stocks and precious metals to new record highs, while the cryptocurrency market and Bitcoin have remained sidelined. According to data, last week, capital flows on Wall Street confirm investor caution: approximately $500 million was withdrawn from American Bitcoin ETFs, amounting to about $4.3 billion over the last two months, alongside a drop in the total cryptocurrency market capitalization of over $1.2 trillion.

The current situation may represent only a temporary correction following a strong rally. Investors might be reassessing their portfolios in light of the year's end, locking in profits on more speculative assets and reallocating funds into more reliable instruments. In any case, the dynamics of capital flows in the coming months will be a key indicator of the cryptocurrency market's future.

Regarding intraday strategy in the cryptocurrency market, I will continue to base my actions on any significant pullbacks in Bitcoin and Ethereum in anticipation of the ongoing development of the bullish market in the long term, which has not faded away.

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

Bitcoin

Buy Scenario

• Scenario No. 1: I plan to buy Bitcoin today upon reaching an entry point around $90,200, targeting a move to $91,200. Near $91,200, I will exit my purchases and sell immediately on the bounce. Before buying on the breakout, ensure that the 50-day moving average is below the current price and the Awesome Oscillator is in the positive zone.
• Scenario No. 2: I can buy Bitcoin from the lower boundary at $89,700 if there is no market reaction upon its breakout, targeting levels at $90,200 and $91,200.

Sell Scenario

• Scenario No. 1: I will sell Bitcoin today upon reaching an entry point around $89,700, targeting a drop to $88,900. Near $88,900, I will exit my sales and buy immediately on the bounce. Before selling on the breakout, ensure that the 50-day moving average is above the current price and the Awesome Oscillator is in the negative zone.
• Scenario No. 2: I can sell Bitcoin from the upper boundary at $90,200 if there is no market reaction upon its breakout, targeting levels at $89,700 and $88,900.

Ethereum

Buy Scenario

• Scenario No. 1: I plan to buy Ethereum today upon reaching an entry point around $3,050, targeting a move to $3,092. Near $3,092, I will exit my purchases and sell immediately on the bounce. Before buying on the breakout, ensure that the 50-day moving average is below the current price and the Awesome Oscillator is in the positive zone.
• Scenario No. 2: I can buy Ethereum from the lower boundary at $3,022 if there is no market reaction upon its breakout, targeting levels at $3,050 and $3,092.

Sell Scenario

• Scenario No. 1: I will sell Ethereum today upon reaching an entry point around $3,022, targeting a drop to $2,980. Near $2,980, I will exit my sales and buy immediately on the bounce. Before selling on the breakout, ensure that the 50-day moving average is above the current price and the Awesome Oscillator is in the negative zone.
• Scenario No. 2: I can sell Ethereum from the upper boundary at $3,050 if there is no market reaction upon its breakout, targeting levels at $3,022 and $2,980.

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