Trading Recommendations for the Cryptocurrency Market on February 20

[Ben Graham]

The risk of the US imposing new trade tariffs on all trading partners has prompted an immediate, sharp reaction in global markets. This news, much like thunder on a clear day, triggered a massive sell-off of risk assets. Investors, fearing a new escalation of trade tensions and its negative consequences for the global economy, began to swiftly divest from assets perceived as more volatile and susceptible to external shocks.

The wave of panic also reached the cryptocurrency market, which is traditionally viewed as a high-risk area. Bitcoin, the flagship of digital assets, experienced a sharp decline, plummeting to $64,200. This "digital gold," once considered a reliable haven in times of uncertainty, came under selling pressure, indicating that investors are transitioning to more conservative strategies.

Ethereum, the second-largest cryptocurrency by market capitalization, faced a similar fate. Ethereum tested an important psychological level, dropping to $1,845. These movements reflect a general tendency to flee risk, impacting both traditional and new financial markets. The ongoing dynamics of cryptocurrencies will be closely linked to the development of trade relations between the US and its partners, as well as the overall macroeconomic situation.

As for the intraday strategy in the cryptocurrency market, I will continue to base my actions on significant pullbacks in Bitcoin and Ethereum, anticipating the continuation of a long-term bullish market, which remains intact.

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

Bitcoin

Buy Scenario:

• Scenario #1: I plan to buy Bitcoin today upon reaching an entry point around $65,900, targeting a rise to the level of $66,800. Near $66,800, I will exit the buys and sell immediately on a rebound. Before buying on a breakout, ensure that the 50-day moving average is below the current price, and the Awesome indicator is above zero.
• Scenario #2: I can buy Bitcoin from the lower boundary of $65,200 if there is no market reaction to its breakout back to levels of $65,900 and $66,800.

Sell Scenario:

• Scenario #1: I plan to sell Bitcoin today upon reaching an entry point around $65,200, targeting a decline to the level of $64,400. Near $64,400, I will exit the sales and buy immediately on a rebound. Before selling on a breakout, ensure that the 50-day moving average is above the current price, and the Awesome indicator is below zero.
• Scenario #2: I can sell Bitcoin from the upper boundary of $65,900 if there is no market reaction to its breakout back to levels of $65,200 and $64,400.

Ethereum

Buy Scenario:

• Scenario #1: I plan to buy Ethereum today upon reaching an entry point around $1,883, targeting a rise to the level of $1,902. Near $1,902, I will exit the buys and sell immediately on a rebound. Before buying on a breakout, ensure that the 50-day moving average is below the current price, and the Awesome indicator is above zero.
• Scenario #2: I can buy Ethereum from the lower boundary of $1,870 if there is no market reaction to its breakout back to levels of $1,883 and $1,902.

Sell Scenario:

• Scenario #1: I plan to sell Ethereum today upon reaching an entry point around $1,870, targeting a decline to the level of $1,923. Near $1,923, I will exit the sales and buy immediately on a rebound. Before selling on a breakout, ensure that the 50-day moving average is above the current price, and the Awesome indicator is below zero.
• Scenario #2: I can sell Ethereum from the upper boundary of $1,883 if there is no market reaction to its breakout back to levels of $1,870 and $1,923.

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