Bitcoin failed to hold above $94,000 yesterday, while Ethereum is once again headed towards $3,000.

This is mainly due to the US Federal Reserve's mixed stance. Recall that yesterday the interest rate was lowered by 0.25 percentage points, which positively affected the cryptocurrency market. The Fed also announced a bond-buying program, which ostensibly weakens the dollar and should help the cryptocurrency market. However, the central bank published a forecast expecting only one rate cut next year and one in 2027. This is problematic for risk assets, including Bitcoin and Ethereum.

This ambiguity in forecasts prompts investors to exercise caution. On one hand, lower rates and a bond-buying program are undeniably positive factors that increase liquidity in the system and weaken the dollar, which traditionally supports the growth of cryptocurrency prices. On the other hand, the limited number of anticipated rate cuts in the future indicates a slower pace of monetary easing than market participants might have hoped. Moreover, the Fed's economic forecast may signal the central bank's confidence in the resilience of the US economy, reducing the need for more aggressive monetary easing. This, in turn, supports the dollar's position and exerts pressure on risk assets, including Bitcoin and Ethereum.

In this situation, investors must balance between short-term positive signals and long-term prospects. This may be why we are witnessing corrections in the cryptocurrency market, where attempts at growth are followed by declines. For further sustainable growth, Bitcoin and Ethereum will require either a clearer signal from the Fed regarding readiness for more aggressive easing or the emergence of other drivers, such as positive news.

I will proceed by leveraging any significant pullbacks in Bitcoin and Ethereum, anticipating the continuation of the bull market in the medium term, which remains intact.

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 $90,500, targeting growth to the level of $92,400. At around $92,400, I plan to exit the purchases and sell immediately on the rebound. 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: Buying Bitcoin can also occur from the lower boundary of $89,600 if there is no market reaction to breaking it back to the levels of $90,500 and $92,400.

Sell Scenario

• Scenario 1: I will sell Bitcoin today upon reaching an entry point around $89,600, targeting a drop to $87,700. At around $87,700, I plan to exit the sales and buy immediately on the rebound. 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: Selling Bitcoin can also occur from the upper boundary of $90,500 if there is no market reaction to breaking it back to $89,600 and $87,700.

Ethereum

Buy Scenario

• Scenario 1: I will buy Ethereum today upon reaching an entry point around $3,222, targeting growth to the level of $3,320. At around $3,320, I plan to exit the purchases and sell immediately on the rebound. 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: Buying Ethereum can also occur from the lower boundary of $3,179 if there is no market reaction to breaking it back to $3,222 and $3,320.

Sell Scenario

• Scenario 1: I will sell Ethereum today upon reaching an entry point around $3,179, targeting a drop to $3,110. At around $3,110, I plan to exit the sales and buy immediately on the rebound. 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: Selling Ethereum can also occur from the upper boundary of $3,222 if there is no market reaction to breaking it back to $3,179 and $3,110.