FX.co ★ Trading Recommendations for the Cryptocurrency Market on March 4

Just as buyers were starting to celebrate, Bitcoin and Ethereum experienced a sharp decline, erasing all the gains made the previous day after Donald Trump's statements were misinterpreted. Many representatives from the cryptocurrency industry asserted that Bitcoin is the only suitable asset for the U.S. strategic cryptocurrency reserve, dismissing the other assets mentioned by Trump. This led to a significant sell-off in the cryptocurrency market, which was further exacerbated by another drop in U.S. stock indices.

Fearing for the future of crypto assets and their potential integration into government reserves, investors began offloading altcoins en masse. DeFi project tokens were hit particularly hard. Many experts note that even if never implemented, Trump's statements set a precedent for future political speculation and manipulation, which could be extremely harmful to the crypto industry.

Over the past weekend, former U.S. President Donald Trump stated that a U.S. cryptocurrency reserve would bolster the industry after years of corruption-driven attacks from the Biden administration. According to him, this reserve should include BTC, ETH, XRP, SOL, and ADA.

Additional pressure on risk assets came from Trump's latest comments regarding trade tariffs on Mexico, Canada, and China.

Recent remarks have heightened concerns about a potential global economic slowdown, which has led to market instability. Investors are worried that trade wars may adversely affect economic growth prospects, resulting in a decreased appetite for riskier assets. In response to these circumstances, investors typically reallocate their funds into safer assets like government bonds and gold.

As for the intraday trading strategy, I will focus on major pullbacks in Bitcoin and Ethereum, anticipating continuing the bullish trend in the medium term.

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

Bitcoin

Buy Scenario

Scenario #1: I plan to buy Bitcoin today if it reaches the entry point around $85,000, targeting a rise to $87,400. Around $87,400, I will exit long positions and sell immediately on a pullback. Before buying on a breakout, ensuring that the 50-day moving average is below the current price and that the Awesome Oscillator is in the positive zone is crucial.

Scenario #2: If the market does not react to a breakdown, Bitcoin can also be bought from the lower boundary of $83,100, with targets of $85,000 and $87,400.

Sell Scenario

Scenario #1: I plan to sell Bitcoin today if it reaches the entry point around $83,100, targeting a decline to $81,000. Around $81,000, I will exit short positions and buy immediately on a pullback. Before selling on a breakout, ensuring that the 50-day moving average is above the current price and that the Awesome Oscillator is in the negative zone is essential.

Scenario #2: Bitcoin can also be sold from the upper boundary of $85,000 if there is no market reaction to a breakout, with a target of $83,100 and $81,000.

Ethereum

Buy Scenario

Scenario #1: I plan to buy Ethereum today if it reaches the entry point around $2,139, targeting a rise to $2,254. Around $2,254, I will exit long positions and sell immediately on a pullback. Before buying on a breakout, ensuring that the 50-day moving average is below the current price and that the Awesome Oscillator is in the positive zone is important.

Scenario #2: If the market does not react to a breakdown, Ethereum can also be bought from the lower boundary of $2,065, with a target of $2,139 and $2,254.

Sell Scenario

Scenario #1: I plan to sell Ethereum today if it reaches the entry point around $2,065, targeting a decline to $1,940. Around $1,940, I will exit short positions and buy immediately on a pullback. Before selling on a breakout, ensuring that the 50-day moving average is above the current price and that the Awesome Oscillator is in the negative zone is necessary.

Scenario #2: Ethereum can also be sold from the upper boundary of $2,139 if there is no market reaction to a breakout, with a target of $2,065 and $1,940.