18.03.202608:27 Forex Analysis & Reviews: Trading Recommendations for the Cryptocurrency Market on March 18

Bitcoin remained trading around $74,000 yesterday, not making another attempt to rise towards $76,000. Ethereum is full of hope, remaining above the $2,300 level, keeping alive the chances of a surge towards $2,400.

However, further growth in the cryptocurrency market now directly depends on the Federal Reserve's meeting and the decisions it makes. A dovish stance from the Fed will lead to a new wave of growth for Bitcoin and Ethereum, while an expected hawkish stance will quickly dampen the bullish prospects for the cryptocurrency market.

If the Federal Reserve demonstrates a readiness for further monetary easing by maintaining low interest rates or even lowering them, this will create a favorable environment for the growth of the cryptocurrency market. Low borrowing costs encourage investors to seek higher-yielding assets, and cryptocurrencies like Bitcoin and Ethereum, with their significant growth potential, become attractive investment targets. Increased liquidity in the global economy also contributes to capital inflows into risky markets, which will inevitably reflect in the growth of digital asset values.

On the other hand, if the Fed takes a more hawkish stance, primarily due to rising inflation risks following the start of the US war in the Middle East, signaling a potential interest rate hike if necessary, this will have a predictable negative impact on the cryptocurrency market. Rising interest rates make traditional financial instruments like bonds more attractive, diverting capital away from more speculative assets. In such an environment, investors are likely to prefer to reduce risks, leading to a sell-off of cryptocurrencies and, consequently, a decline in their values.

As for the intraday strategy in the cryptocurrency market, I will continue to act based on any significant pullbacks in Bitcoin and Ethereum with the expectation of a continued bullish market in the long term, which has not gone away.

Regarding short-term trading, the strategy and conditions are described below.

Bitcoin

Buy Scenario

• Scenario #1: I will buy Bitcoin today upon reaching the entry point around $74,300, with a target of rising to $75,000. Around $75,000, I will exit the buys and sell immediately on the bounce. 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: You can buy Bitcoin from the lower boundary of $73,700 if there is no market reaction to its breakout backward towards the levels of $74,300 and $75,000.

Sell Scenario

• Scenario #1: I will sell Bitcoin today upon reaching the entry point around $73,700 with the target of falling to the level of $73,000. Around $73,000, I will exit the sells and buy immediately on the bounce. 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: You can sell Bitcoin from the upper boundary of $74,300 if there is no market reaction to its breakout backward towards the levels of $73,700 and $73,000.

Ethereum

Buy Scenario

• Scenario #1: I will buy Ethereum today upon reaching the entry point around $2,334, with a target of rising to $2,380. Around $2,380, I will exit the buys and sell immediately on the bounce. 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: You can buy Ethereum from the lower boundary of $2,306 if there is no market reaction to its breakout backward towards the levels of $2,334 and $2,380.

Sell Scenario

• Scenario #1: I will sell Ethereum today upon reaching the entry point around $2,306, with a target of falling to $2,271. Around $2,271, I will exit the sells and buy immediately on the bounce. 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: You can sell Ethereum from the upper boundary of $2,334 if there is no market reaction to its breakout backward towards the levels of $2,306 and $2,271.