Recommendations for Trading in the Cryptocurrency Market on February 3

[Ben Graham]

Bitcoin has bounced back from a low of around $74,500 and is currently trading in the area of $78,300. Ethereum also made a decent recovery yesterday; however, long-term upward potential is unlikely to be maintained.

All eyes were on the White House meeting yesterday, which brought together representatives from the crypto industry and the banking sector. Representatives from Coinbase, major crypto trading groups, and banking organizations discussed how rewards in stablecoins should be distributed and whether third parties like Coinbase should be allowed to offer these rewards.

"The meeting at the White House was an important step forward in seeking solutions for bipartisan legislation regarding the market structure of digital assets, and we applaud Patrick Harkins' leadership and the administration's efforts to bring stakeholders together to work on one of the key outstanding issues: rewards in stablecoins," stated Summer Mersinger, Executive Director of the Blockchain Association.

Media reports indicate that the parties engaged in a lively discussion, and this time, banks found themselves in the minority. Additionally, the composition of future meetings was determined, as the White House wants participants to come prepared for decision-making and compromise. Given that banking representatives maintained a rigid stance, pointing to their lack of flexibility in negotiations for a compromise, a final decision was not reached. However, rumors suggest a compromise will likely be reached, though it will take time.

Bitcoin did not react to these developments.

As for the intraday strategy in the cryptocurrency market, I will continue to take advantage of significant dips in Bitcoin and Ethereum, anticipating the ongoing development of a long-term bullish market, which has not disappeared.

Regarding short-term trading, the strategy and conditions are outlined below.

Bitcoin

Buy Scenario

Scenario #1: I plan to buy Bitcoin today when it reaches an entry point around $79,100, with a target price of $80,300. At around $80,300, I will exit the 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 indicator is above zero.

Scenario #2: Buying Bitcoin is also possible from the lower boundary at $78,000, provided there is no market reaction to its breakout back towards $79,100 and $80,300.

Sell Scenario

Scenario #1: I plan to sell Bitcoin today after reaching the entry point around $78,000, with a target drop to $76,700. At around $76,700, I will exit the sales and immediately buy on the bounce. Before selling on the breakout, ensure that the 50-day moving average is above the current price and the Awesome indicator is below zero.

Scenario #2: Selling Bitcoin can also be done at the upper boundary of $79,100 if there is no market reaction to its breakout back towards $78,000 and $76,700.

Ethereum

Buy Scenario

Scenario #1: I plan to buy Ethereum today when it reaches an entry point around $2,355 with a target growth to the level of $2,407. At around $2,407, I will exit the purchases and sell immediately on the bounce. Before buying on the breakout, make sure that the 50-day moving average is below the current price and the Awesome indicator is above zero.

Scenario #2: Buying Ethereum is also possible from the lower boundary at $2,304, provided there is no market reaction to its breakout back towards $2,355 and $2,407.

Sell Scenario

Scenario #1: I plan to sell Ethereum today when it reaches an entry point around $2,304, with a target drop to $2,239. At around $2,239, I will exit the sales and buy immediately on the bounce. Before selling on the breakout, make sure that the 50-day moving average is above the current price and the Awesome indicator is below zero.

Scenario #2: Selling Ethereum can also be done from the upper boundary at $2,355 if there is no market reaction to its breakout back towards $2,304 and $2,239.

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