27.01.202510:25 Forex Analysis & Reviews: Trading Recommendations for the Cryptocurrency Market on January 27

After a relatively calm weekend with no significant market movements, Bitcoin and Ethereum have now experienced substantial drops. Ethereum has already lost over 8%, while Bitcoin has corrected by 5.5%, delivering a harsh blow to those who did not manage their risks effectively.

In the past 24 hours, long positions in Bitcoin have seen liquidations totaling $613 million. However, these movements are still within the bounds of a correction. A break below the $100,000 level was anticipated to cause a significant downturn in the market. For now, this remains a correction, with the bears' primary target set at $90,000. If this level is breached, many market participants could encounter serious challenges.

Understanding that corrections are a natural part of the market cycle is essential, as they often precede the emergence of new strategies and trends. Bearish pressure can significantly impact investor sentiment, leading to panic selling and increased volatility. If the market breaks through the $90,000 level, the consequences could be severe, prompting many funds and private investors to reevaluate their strategies.

Staying cautious and informed about current trends and economic indicators is crucial for successfully navigating this volatility. However, it's also important to recognize that corrections present opportunities. Investors who can capitalize on these moments may benefit significantly by entering the market at lower prices. Keep in mind that every price range comes with its own set of risks and opportunities, and a thoughtful approach to analyzing the situation is key to successful investing.

I will continue to implement my intraday strategy in the cryptocurrency market, focusing on significant drawdowns of Bitcoin and Ethereum. I believe that the bull market is still in progress and remains intact in the medium term.

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

Bitcoin

Buy Scenario

• Scenario 1: Buy Bitcoin upon reaching $99,600, aiming for a rise to $103,000. Exit positions at $103,000 and immediately sell on a bounce. Ensure the 50-day moving average is below the current price and the Awesome Oscillator is in positive territory before entering.
• Scenario 2: Buy Bitcoin at the lower boundary of $97,400, provided there is no market reaction to break below it, targeting levels at $99,600 and $103,000.

Sell Scenario

• Scenario 1: Sell Bitcoin at $97,400, targeting a drop to $93,300. Exit at $93,300 and buy immediately on a bounce. Ensure the 50-day moving average is above the current price and the Awesome Oscillator is in negative territory before entering.
• Scenario 2: Sell Bitcoin at the upper boundary of $99,600, provided there is no market reaction to break above it, targeting levels at $97,400 and $93,300.

Ethereum

Buy Scenario

• Scenario 1: Buy Ethereum upon reaching $3388, aiming for a rise to $3486. Exit positions at $3486 and immediately sell on a bounce. Ensure the 50-day moving average is below the current price and the Awesome Oscillator is in positive territory before entering.
• Scenario 2: Buy Ethereum at the lower boundary of $3318, provided there is no market reaction to break below it, targeting levels at $3388 and $3486.

Sell Scenario

• Scenario 1: Sell Ethereum at $3318, targeting a drop to $3211. Exit at $3211 and buy immediately on a bounce. Ensure the 50-day moving average is above the current price and the Awesome Oscillator is in negative territory before entering.
• Scenario 2: Sell Ethereum at the upper boundary of $3388, provided there is no market reaction to break above it, targeting levels at $3318 and $3211.