Trading recommendations for the cryptocurrency market on January 19

[Ben Graham]

The Bitcoin price collapsed after news that Donald Trump is preparing to impose additional tariffs on European countries if the United States is not allowed to acquire Greenland. A strengthening of risk-off sentiment could lead to a much larger BTC sell-off in the near term.

Investors, already frightened by the prospect of a fragile crypto market recovery, perceived the new wave of geopolitical uncertainty as a signal to flee to safer assets. Gold and government bonds immediately rose, while cryptocurrencies, once considered digital gold, came under selling pressure.

The correlation between political events and Bitcoin's price is becoming increasingly noticeable. Previously, digital assets often ignored such shocks, but growing institutionalization of the market and the arrival of large players are changing the rules. Now BTC often mirrors the dynamics of traditional markets and becomes vulnerable to the same factors. It should be noted that Trump's statements may be only a tactical move in trade negotiations, but panic in the crypto market has already started. The probability of further short-term declines in Bitcoin is assessed as high.

As for the intraday strategy in the crypto market, I will continue to act on large drawdowns in Bitcoin and Ether, while counting on the long-term continuation of the bull market, which has not disappeared.

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

Bitcoin

Scenario for buying

No. 1: I will buy Bitcoin today if the price reaches an entry point around $92,800, with a target of $93,700. Around $93,700, I will exit longs and sell immediately on the rebound. Before buying on a breakout, make sure 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 $92,300 if there is no market reaction to its downside breakout, targeting $92,800 and $93,700.

Scenario for selling

Scenario No. 1: I will sell Bitcoin today if the price reaches an entry point around $92,300 with a target to fall to $91,000. Around $91,000, I will exit shorts and buy immediately on the rebound. Before selling on a breakout, make sure 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 $92,800 if there is no market reaction to its breakout to the upside, targeting $92,300 and $91,000.

Ethereum

Scenario for buying

Scenario No. 1: I will buy Ether today if the price reaches an entry point around $3,217 with a target to rise to $3,256. Around $3,256, I will exit longs and sell immediately on the rebound. Before buying on a breakout, make sure the 50-day moving average is below the current price and the Awesome indicator is above zero.

Scenario No. 2: Ether can be bought at the lower boundary at $3,192 if there is no market reaction to its downside breakout, targeting $3,217 and $3,256.

Scenario for selling

Scenario No. 1: I will sell Ether today if the price reaches an entry point around $3,192 with a target to fall to $3,151. Around $3,151, I will exit shorts and buy immediately on the rebound. Before selling on a breakout, make sure the 50-day moving average is above the current price and the Awesome indicator is below zero.

Scenario No. 2: Ether can be sold from the upper boundary at $3,217 if there is no market reaction to its breakout to the upside, targeting $3,192 and $3,151.

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