02.10.202411:08 Forex Analysis & Reviews: Trading tips for crypto market on October 2

Bitcoin and Ether Buyers did not cope well

Bitcoin recovered to around $61,500 during the European session on Wednesday morning after falling to $60,300 on Tuesday evening. This drop followed the escalation of the conflict in the Middle East, which dashed hopes for a steady rally in what is commonly the most optimistic month for the crypto asset.

Iran launched about 200 ballistic missiles at Israel, threatening another round of attacks, and Israeli Prime Minister Benjamin Netanyahu vowed to retaliate. The news caused the risky assets, including cryptocurrencies, to plummet. BTC slumped, while gold surged. The flagship cryptocurrency printed a one-day drop of almost 6% at one point. This marked the worst start to what has historically been the best month for Bitcoin, with only two bearish Octobers in the past 11 years. If Israel responds to Iran's attacks by the end of the week, the risk asset market, including Bitcoin and Ether, is likely to extend its weakness. However, in the medium term, this is a good moment to build long positions in anticipation of recovery by the end of the year. Regarding the intraday strategy on the cryptocurrency market, I will plan my market entries based on any significant drops in Bitcoin and Ether. I expect the bull market to continue in the medium term.

The strategy and conditions are outlined below for short-term trading.

Bitcoin

Buy scenario I will buy Bitcoin today when the price reaches around $61,965, aiming for a rise to the $62,991 level. I will exit the buy position and sell immediately on the bounce at about $62,991. Before buying on the breakout, it's best to ensure that the Stochastic indicator is near the lower border, around the 20 level.

Sell scenario I will sell Bitcoin today when the price falls $61,465, aiming for a drop to the $59,940 level. I will exit the sell position and buy immediately on the dip at around $59,940. Before selling during the breakout, make ensure that the Stochastic indicator is near the upper border, around the 80 level.

Ethereum

Buy scenario I will buy Ether today when its price reaches around $2,500, bearing in mind a climb to the $2,564 level. I will exit the buy position and sell immediately on the bounce at around $2,564. Before buying on the breakout, I will check that the Stochastic indicator is near the lower border, around the 20 level.

Sell scenario I will sell Ether today when the price declines to $2,461, aiming for a drop to the $2,389 level. I will exit the sell position and buy immediately on the dip at around $2,389. Before selling during the breakout, ensure that the Stochastic indicator is near the upper border, around the 80 level.