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Yesterday, Bitcoin stopped just shy of the $114,000 mark, and during today's Asian trading, it quickly dropped back to around $111,500. Apparently, this level is where it's currently most comfortable trading. Ethereum fell below $4,000, triggering $141 million in long liquidations.
This sharp market move came as a surprise to many traders who had bet on continued growth for the second-largest cryptocurrency. The break below the psychologically important $4,000 mark triggered a chain reaction—exchanges began to close leveraged positions, which further intensified the downtrend automatically.
Several factors contributed to this crash. First, general uncertainty in global financial markets is weighing on all risk assets, including cryptocurrencies. The lack of clear direction from central banks and ongoing geopolitical tensions are creating an environment of caution, prompting investors to trim positions in volatile instruments. Second, the crypto market itself is undergoing a consolidation phase after strong gains. Third, it's important to remember the speculative nature of many crypto trades. Short-term investments based on leverage leave the market particularly vulnerable to sudden shifts in sentiment. The break of $4,000 in Ethereum served as a catalyst that triggered a mass exit and deepened the decline.
For an intraday strategy in the cryptocurrency market, I'll continue to focus on any major dips in Bitcoin and Ethereum as opportunities to play a medium-term bullish trend, which remains intact.
For short-term trading, see the strategies and entries outlined below.
Scenario 1: I plan to buy Bitcoin today on a move down to around $112,100, targeting a rise to $113,100. Near $113,100, I'll exit the long and immediately look to sell on the pullback. Before entering a breakout buy, make sure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.
Scenario 2: It's also possible to buy from the lower boundary at $111,400 if there is no market reaction to a break below that level, aiming for moves up to $112,100 and $113,100.
Scenario 1: I plan to sell Bitcoin today if the price drops to $111,400, targeting a decline to $110,300. Around $110,300, I'll exit shorts and look to buy quickly on the rebound. Before a breakout sell, ensure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.
Scenario 2: You can also sell from the upper boundary at $112,100 if there is no momentum follow-through, targeting $111,400 and $110,300 on the way down.
Scenario 1: I plan to buy Ethereum today on a dip to around $4,039, targeting a move up to $4,116. Near $4,116, I'll exit the long and immediately switch to selling on the pullback. Before a breakout buy, ensure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.
Scenario 2: Buying is also considered from the lower bound at $3,886 if there's no negative reaction to a break, targeting climbs back to $4,039 and $4,116.
Scenario 1: I plan to sell Ethereum today at an entry around $3,986 with a target of $3,912. Around $3,912, I'll exit shorts and look to buy quickly on the rebound. Before breakout shorting, make sure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.
Scenario 2: Selling is also legit from the upper boundary at $4,039 if there is no momentum follow-through, targeting $3,986 and $3,912 on any subsequent move down.