20.08.202614:04 Forex Analysis & Reviews: Cryptocurrency Trading Recommendations – August 20 (U.S. Session)

Bitcoin and Ethereum continue to reach new highs. Bitcoin is already above $72,000, while Ethereum is targeting a breakout above $2,320.

Against this backdrop, the Crypto Fear & Greed Index rose to 62 points, entering the greed zone for the first time since January. The shift in sentiment was rapid even by cryptocurrency market standards. A month ago, the index stood at 25 in the extreme fear zone; a week ago, it had risen to 29; and just the previous day, it stood at 46. Bitcoin's move above $72,000, combined with a record wave of short-position liquidations exceeding $3 billion, then shifted market sentiment decisively toward greater optimism.

The change in sentiment logically followed the price movement itself. It is worth noting that Bitcoin has broken above the $62,000–66,900 sideways range, with two consecutive catalysts triggering the move: the U.S. Treasury's decision to double purchases of long-term government bonds, followed by Trump's meeting with cryptocurrency industry leaders at the White House, where the president called on Congress to pass the CLARITY Act and indicated that large-scale government purchases of Bitcoin could be possible.

It was precisely the combination of positive macroeconomic and political developments with a market heavily loaded with short positions that created the conditions for the sentiment index to jump from extreme fear to greed in less than a month.

It should be noted that such sharp reversals in the index have not always historically coincided with a sustained continuation of the upward trend, so caution is warranted when buying at current highs.

Bitcoin

Buying Scenario

Scenario #1: Today, I will buy Bitcoin when the entry point is reached around $72,300, with a target of $73,600. Around $73,600, I will close the long position and immediately sell on a rebound. Before buying on a breakout, make sure that the 50-day moving average is below the current price and that the Awesome Oscillator is above zero.

Scenario #2: Bitcoin can be bought from the lower boundary at $71,500 if there is no market reaction to a breakout below this level and the price returns toward $72,300 and $73,600.

Selling Scenario

Scenario #1: Today, I will sell Bitcoin when the entry point is reached around $71,500, with a target of $70,300. Around $70,300, I will close the short position and immediately buy on a rebound. Before selling on a breakout, make sure that the 50-day moving average is above the current price and that the Awesome Oscillator is below zero.

Scenario #2: Bitcoin can be sold from the upper boundary at $72,300 if there is no market reaction to a breakout above this level and the price returns toward $71,500 and $70,300.

Ethereum

Buying Scenario

Scenario #1: Today, I will buy Ethereum when the entry point is reached around $2,325, with a target of $2,376. Around $2,376, I will close the long position and immediately sell on a rebound. Before buying on a breakout, make sure that the 50-day moving average is below the current price and that the Awesome Oscillator is above zero.

Scenario #2: Ethereum can be bought from the lower boundary at $2,279 if there is no market reaction to a breakout below this level and the price returns toward $2,325 and $2,376.

Selling Scenario

Scenario #1: Today, I will sell Ethereum when the entry point is reached around $2,279, with a target of $2,227. Around $2,227, I will close the short position and immediately buy on a rebound. Before selling on a breakout, make sure that the 50-day moving average is above the current price and that the Awesome Oscillator is below zero.

Scenario #2: Ethereum can be sold from the upper boundary at $2,325 if there is no market reaction to a breakout above this level and the price returns toward $2,279 and $2,227.