Trading Recommendations for the Cryptocurrency Market on February 18

[Ben Graham]

Bitcoin fell back to around $66,600 yesterday but has since returned to $68,000 today. Ethereum remains below $2,000, which only increases short-term pressure on it.

Meanwhile, despite numerous statements from the International Monetary Fund indicating that El Salvador has formally rolled back its ambitious Bitcoin experiment, the country's real actions suggest otherwise. El Salvador continues to not only purchase cryptocurrency daily but also steadily ramp up the accumulation of its digital reserves. This persistent approach reflects the government's deep faith in Bitcoin's potential as a reliable asset and a tool for strengthening the national economy.

Currently, the country has amassed an impressive total of 7,565 BTC. This figure is not static and continues to increase as purchases are made regularly.

El Salvador is not alone in these efforts. Strategy, a company actively involved in this process, also announced yesterday the purchase of an additional 2,486 BTC for $168 million. The average acquisition price of these assets now stands at $67,710 per coin. This indicates a strategic approach to asset management, in which purchases are made with current market conditions in mind while maintaining a long-term focus.

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

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

Bitcoin

Buy Scenario

• Scenario 1: I plan to buy Bitcoin today upon reaching the entry point around $68,000, targeting a rise to $69,900. At $69,900, I will exit the buy position and sell immediately on the bounce. Before buying on a breakout, ensure that the 50-day moving average is below the current price and that the Awesome indicator is above zero.
• Scenario 2: I can buy Bitcoin from the lower boundary at $67,700 if there is no market reaction to its breakout in the opposite direction towards levels of $68,000 and $69,900.

Sell Scenario

• Scenario 1: I plan to sell Bitcoin today upon reaching the entry point around $67,700, targeting a decline to $66,600. At $66,600, I will exit the sell position and immediately buy on the bounce. Before selling on a breakout, ensure that the 50-day moving average is above the current price and that the Awesome indicator is below zero.
• Scenario 2: I can sell Bitcoin from the upper boundary at $68,000 if there is no market reaction to its breakout in the opposite direction towards levels of $67,700 and $66,600.

Ethereum

Buy Scenario

• Scenario 1: I plan to buy Ethereum today upon reaching the entry point around $2,004, targeting a rise to $2,032. At $2,032, I will exit the buy position and sell immediately on the bounce. Before buying on a breakout, ensure that the 50-day moving average is below the current price and that the Awesome indicator is above zero.
• Scenario 2: I can buy Ethereum from the lower boundary at $1,990 if there is no market reaction to its breakout in the opposite direction towards levels of $2,004 and $2,032.

Sell Scenario

• Scenario 1: I plan to sell Ethereum today upon reaching the entry point around $1,990, targeting a decline to $1,968. At $1,968, I will exit the sell position and immediately buy on the bounce. Before selling on a breakout, ensure that the 50-day moving average is above the current price and that the Awesome indicator is below zero.
• Scenario 2: I can sell Ethereum from the upper boundary at $2,004 if there is no market reaction to its breakout in the opposite direction towards levels of $1,990 and $1,968.

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