22.10.202509:06 Forex Analysis & Reviews: Cryptocurrency Market Trading Recommendations for October 22

Bitcoin failed to hold the $113,800 level yesterday and quickly lost ground by the end of the day, returning to the $108,000 area. Ethereum also fell below the $4,000 mark, which raises further concern about potential large-scale sell-offs.

Bitcoin's growth yesterday occurred following comments in an interview by Federal Reserve member Christopher Waller, who stated that BTC could eventually become a form of electronic gold. Not many Fed officials are willing to make such statements; however, the stance of one of the Fed's key figures on cryptocurrencies is certainly a positive signal for traders and investors.

Given Bitcoin's sharp drop, such a view from a high-ranking official is a breath of fresh air for the crypto community. Investors and traders, tired of constant calls for regulation, interpreted Waller's words as a signal of a possible softening in the central bank's rhetoric. It's worth noting that recognizing Bitcoin as a form of electronic gold implies its use as a safe-haven asset, an alternative to traditional gold reserves. This approach opens new opportunities for institutional investors who had previously refrained from investing in cryptocurrencies due to the lack of a clear legal framework and regulatory uncertainties.

However, the significance of a single statement should not be overestimated. Fed policy is set collegially, and Waller's words do not guarantee an immediate change to the central bank's approach toward crypto. Nevertheless, this event can be seen as an important precedent, indicating the gradual acceptance of digital assets in the financial world. The impact of this statement is likely to be felt over the long term, supporting further development of the cryptocurrency industry and the establishment of a more definitive regulatory framework.

Regarding the intraday cryptocurrency market strategy, I will continue to operate based on major dips in Bitcoin and Ethereum, anticipating the continuation of the medium-term bull market, which remains intact.

In terms of short-term trading, the strategy and trade setups are as follows:

Bitcoin

Buy Scenario

• Scenario #1: I will buy Bitcoin today upon reaching the entry point around $108,800 with an upward target at $110,300. Around the $110,300 level, I will exit long positions and sell immediately on a pullback. Before entering a breakout buy trade, ensure that the 50-day moving average is below the current price and the Awesome Oscillator is above zero.
• Scenario #2: Bitcoin can also be bought from the lower boundary at $107,700 if there is no reaction to a breakout downward, targeting levels of $108,800 and $110,300.

Sell Scenario

• Scenario #1: I will sell Bitcoin today upon reaching the entry point around $107,700, targeting a fall to $106,400. Around the $106,400 level, I will exit short positions and buy immediately on a pullback. Before entering a breakout sell trade, ensure that the 50-day moving average is above the current price and the Awesome Oscillator is below zero.
• Scenario #2: Bitcoin can be sold from the upper boundary at $108,800 if there is no reaction to an upward breakout, targeting levels of $107,700 and $106,400.

Ethereum

Buy Scenario

• Scenario #1: I will buy Ethereum today upon reaching the entry point around $3,883, targeting a move up to $3,971. Around the $3,971 level, I will exit long positions and sell immediately on a pullback. Before entering a breakout buy trade, ensure that the 50-day moving average is below the current price and the Awesome Oscillator is above zero.
• Scenario #2: Ethereum can be bought from the lower boundary at $3,826 if there is no reaction to a breakout downward, targeting levels of $3,883 and $3,971.

Sell Scenario

• Scenario #1: I will sell Ethereum today upon reaching the entry point around $3,826, targeting a decline to $3,742. Around the $3,742 level, I will exit short positions and buy immediately on a pullback. Before entering a breakout sell trade, ensure that the 50-day moving average is above the current price and the Awesome Oscillator is below zero.
• Scenario #2: Ethereum can be sold from the upper boundary at $3,883 if there is no reaction to an upward breakout, targeting levels of $3,826 and $3,742.