Trading Recommendations for the Cryptocurrency Market on February 26

[Ben Graham]

Yesterday, the Bitcoin exchange rate saw a rapid recovery, gaining almost 10% in a single day and nearly reaching $70,000. It's worth noting that just a day prior, trading was around $62,500. Ethereum also returned above $2,000, surpassing the $2,100 mark.

The sharp rise in Ethereum occurred precisely when Ethereum developers presented a roadmap promising over 10,000 transactions per second on Layer 1. This news could mark a significant breakthrough, potentially resolving one of the main scalability issues that have long limited the widespread adoption of the Ethereum network. The roadmap also includes ambitious plans to reduce transaction finalization time to 18 seconds, significantly speeding up interactions with decentralized applications and making the network much more responsive.

These innovations aim to change the landscape of decentralized finance (DeFi) and non-fungible tokens (NFTs). It is expected that increasing the network's capacity and reducing wait times will lead to lower transaction fees, making the use of Ethereum more accessible to a broader audience. Additionally, a significant step is the planned reduction of the staking threshold to 1 ETH. This decision opens the door for more cryptocurrency holders to participate in the consensus process and earn rewards for staking. The democratization of access to staking not only enhances network security through a greater number of validators but also promotes a fairer distribution of earnings from its operation.

Regarding the intraday strategy in the cryptocurrency market, I will continue to focus on any significant pullbacks in Bitcoin and Ethereum while preparing for the ongoing development of a long-term bullish market that remains intact.

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

Bitcoin

Buy Scenario

Scenario #1: I will buy Bitcoin today when it reaches an entry point around $68,900, targeting a move to $70,200. At $70,200, I plan to exit the purchases and immediately sell back on the pullback. 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 $68,000 if there is no market reaction to its breakout back towards $68,900 and $70,200.

Sell Scenario

Scenario #1: I plan to sell Bitcoin today when it reaches an entry point around $68,000, targeting a decline to $67,200. At $67,200, I intend to exit the sales and immediately buy back on the pullback. Before selling on a breakout, ensure 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 $68,900 if there is no market reaction to its breakout back towards $68,000 and $67,200.

Ethereum

Buy Scenario

Scenario #1: I plan to buy Ethereum today when it reaches an entry point around $2,084, targeting a move to $2,153. At $2,153, I intend to exit the purchases and immediately sell back on the pullback. 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 $2,043 if there is no market reaction to its breakout back towards $2,084 and $2,153.

Sell Scenario

Scenario #1: I plan to sell Ethereum today when it reaches an entry point around $2,043, targeting a decline to $2,010. At $2,010, I intend to exit the sales and immediately buy back on the pullback. Before selling on a breakout, ensure 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 $2,084 if there is no market reaction to its breakout back towards $2,043 and $2,010.

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