Trading Recommendations for the Cryptocurrency Market on December 26

[Ben Graham]

Bitcoin has returned to the $89,000 region today, clearly trying to catch up with the U.S. stock market, which set a new annual high mid-week. Ethereum has also climbed back to the $3,000 mark. However, whether this bullish momentum can be sustained by the end of the week is a complex question.

With the New Year holidays approaching, it's unlikely that traders will engage in anything extraordinary, so I wouldn't anticipate continued bullish trends for Bitcoin above $90,000 or for Ethereum above $3,000. Meanwhile, according to CryptoQuant data, whales have sharply reduced BTC transfers to exchanges. For example, the volume of deposits from large players to one of the largest global cryptocurrency exchanges decreased from $7.88 billion to $3.86 billion in December. This suggests that fewer and fewer people are willing to sell, which is good for the market's bullish prospects.

This significant drop in BTC deposits from large holders on cryptocurrency exchanges is an important indicator of changing market sentiments. A decrease in major investors' willingness to sell their assets indicates increasing confidence in Bitcoin and the cryptocurrency market's future. Whales may be revising their investment strategies, considering the long-term potential of BTC and anticipating further growth in its value. However, the reduction in sales could also be linked to growing institutional interest in cryptocurrencies and the emergence of new opportunities for holding and managing digital assets without the need for direct sales on exchanges.

Regarding intraday strategy in the cryptocurrency market, I will continue to act based on any significant pullbacks in Bitcoin and Ethereum, anticipating the continuation of the bullish market in the long term, which has not disappeared.

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

Bitcoin:

Buy Scenario

• Scenario 1: I will buy Bitcoin today upon reaching an entry point around $89,300, targeting a rise to $90,300. Near $90,300, I will exit my long positions 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 2: I can buy Bitcoin from the lower boundary at $88,700 if there is no market reaction upon its breakout, targeting levels at $89,300 and $90,300.

Sell Scenario

• Scenario 1: I will sell Bitcoin today upon reaching an entry point around $88,700, targeting a drop to $87,900. Near $87,900, I will exit my short positions 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 2: I can sell Bitcoin from the upper boundary at $89,300 if there is no market reaction upon its breakout, targeting levels at $88,700 and $87,900.

Ethereum:

Buy Scenario

• Scenario 1: I will buy Ethereum today upon reaching an entry point around $2,979, targeting a rise to $3,015. Near $3,015, I will exit my longs 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 2: I can buy Ethereum from the lower boundary at $2,958 if there is no market reaction upon its breakout, targeting levels at $2,979 and $3,015.

Sell Scenario

• Scenario 1: I will sell Ethereum today upon reaching an entry point around $2,958, targeting a drop to $2,934. Near $2,934, I will exit my shorts 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 2: I can sell Ethereum from the upper boundary at $2,979 if there is no market reaction upon its breakout, targeting levels at $2,958 and $2,934.

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