FX.co ★ Trading Recommendations for the Cryptocurrency Market on February 25

Bitcoin has fallen from the $91,000 mark, raising concerns about its potential for further growth. Meanwhile, Ethereum has dropped over 7% in just one day, returning to a downtrend after failing to maintain its position above $2,800.

Despite all this, MicroStrategy continues to actively buy Bitcoin. According to the latest SEC reports, the company has purchased 20,356 BTC at an average price of $97,514 per BTC. As of now, MicroStrategy holds a total of 499,096 BTC, with a cumulative investment of approximately $33.1 billion, averaging $66,357 per BTC. This action showcases MicroStrategy's strong confidence in the long-term potential of cryptocurrency, despite market fluctuations and criticism from analysts. The company's strategy of accumulating Bitcoin as its primary reserve asset remains consistent.

However, such an aggressive investment approach comes with inherent risks. The company's financial stability is closely tied to Bitcoin's price movements, making it susceptible to significant market fluctuations. Furthermore, the debt incurred to finance these purchases necessitates careful management.

In an interview, Michael Saylor, the founder of MicroStrategy, stated: "BTC is digital capital. Today, it's a $2 trillion network. In 4–8 years, it will grow to $20 trillion. After that, it will expand faster than any other asset globally. The U.S. must own BTC." This statement reflects Saylor's confidence in Bitcoin's long-term potential. He views BTC not merely as a speculative asset but as a form of digital capital capable of significant price appreciation and expansion. However, a $20 trillion valuation in the coming years represents an ambitious vision for cryptocurrency's future.

In terms of my intraday strategy in the cryptocurrency market, I will continue to take advantage of any significant dips in Bitcoin and Ethereum, as I expect the medium-term bull market to remain intact.

For short-term trading, I have outlined my strategy and conditions below.

Bitcoin

Buy Scenario

Scenario #1: I plan to buy Bitcoin today if it reaches $92,585, targeting an increase to $93,600. At $93,600, I will exit my buy position and sell on a rebound. Before buying on a breakout, I must ensure that the 50-day moving average is below the current price and that the Awesome Oscillator is in the positive zone.

Scenario #2: Bitcoin can also be bought at the lower boundary of $91,400 if there is no market reaction to its breakout, with upside targets at $92,500 and $93,600.

Sell Scenario

Scenario #1: I plan to sell Bitcoin today if it reaches $91,400, targeting a decline to $90,000. At $90,000, I will exit my sell position and buy on a rebound. Before selling on a breakout, I must ensure that the 50-day moving average is above the current price and that the Awesome Oscillator is in the negative zone.

Scenario #2: Bitcoin can also be sold from the upper boundary of $92,800 if there is no market reaction to its breakout, with downside targets at $91,400 and $90,000.

Ethereum

Buy Scenario

Scenario #1: I plan to buy Ethereum today if it reaches $2,524, targeting an increase to $2,612. At $2,612, I will exit my buy position and sell on a rebound. Before buying on a breakout, I must ensure that the 50-day moving average is below the current price and that the Awesome Oscillator is in the positive zone.

Scenario #2: Ethereum can also be bought at the lower boundary of $2,464 if there is no market reaction to its breakout, with upside targets at $2,524 and $2,612.

Sell Scenario

Scenario #1: I plan to sell Ethereum today if it reaches $2,464, targeting a decline to $2,385. At $2,385, I will exit my sell position and buy on a rebound. Before selling on a breakout, I must ensure that the 50-day moving average is above the current price and that the Awesome Oscillator is in the negative zone.

Scenario #2: Ethereum can also be sold from the upper boundary of $2,524 if there is no market reaction to its breakout, with downside targets at $2,464 and $2,385.