Cryptocurrency Trading Recommendations for December 5 (US Session)

[Ben Graham]

Currently, Bitcoin has once again fallen into the $91,000 range and is now trying to make a comeback to the $92,000 mark as the hype surrounding meme tokens is beginning to fade.

As seen on the chart, trading volumes and the market capitalization of various "shitcoins" launched this year continue to stabilize at lower levels. Notably, more than 50% of the sector's total capitalization still belongs to Dogecoin. A decline in this altcoin could significantly pull down the entire meme token market.

The influence of Dogecoin on the meme token market is hard to overstate. Despite the emergence of many new projects, none have come close to matching the popularity of Dogecoin. Historically, Dogecoin has acted as a sort of barometer for the entire sector, and its decline often signals the beginning of a bearish trend for other meme tokens.

The reasons for the declining interest in meme tokens are quite clear. First, investors are becoming more cautious following the downturn in the main cryptocurrency market. Second, many market participants are reassessing their strategies, preferring more reliable assets.

Nevertheless, one cannot entirely rule out a new wave of hype surrounding meme tokens. The cryptocurrency market is known for its unpredictability, and even a short-term positive impulse could rekindle investor interest in this sector.

Regarding the intraday strategy in the cryptocurrency market, I will focus on significant pullbacks in Bitcoin and Ethereum, anticipating the continuation of a medium-term bullish market, which has not disappeared.

Bitcoin

Buy Scenario

• Scenario No. 1: I will buy Bitcoin today upon reaching an entry point around $91,700, targeting a price of $93,400. At 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 from the lower boundary at $90,700 if there is no market reaction to its breakout back towards $91,700 and $93,400.

Sell Scenario

• Scenario No. 1: I will sell Bitcoin today upon reaching an entry point around $90,700, targeting a drop to $88,900. At around $88,900, 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 $91,600 if there is no market reaction to its breakout back towards $90,800 and $88,900.

Ethereum

Buy Scenario

• Scenario No. 1: I will buy Ethereum today upon reaching an entry point around $3,149, targeting growth to $3,209. At around $3,209, 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 from the lower boundary at $3,105 if there is no market reaction to its breakout back towards $3,149 and $3,209.

Sell Scenario

• Scenario No. 1: I will sell Ethereum today upon reaching an entry point around $3,105, targeting a drop to $3,041. At around $3,041, 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 $3,149 if there is no market reaction to its breakout back towards $3,105 and $3,041.

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