Bitcoin and Ethereum started August on a rather bearish note. Following a sharp drop in the U.S. stock market last Friday, the cryptocurrency market also moved downward, once again demonstrating a clear correlation between the two.

Weak U.S. labor market data provided only temporary support to Bitcoin on Friday, after which the asset resumed its decline, breaking below the $112,000 level over the weekend. This brief spike and subsequent fall underscore the heightened volatility inherent in the crypto market and its sensitivity to macroeconomic news. Traders initially appeared to interpret the slowdown in U.S. job growth as a signal that the Federal Reserve might begin easing its monetary policy—something that theoretically should encourage the buying of risk assets. However, that reaction was short-lived. Investors likely reassessed the situation, taking into account ongoing inflation and the overall resilience of the U.S. economy. A deceleration in economic growth is unlikely to be viewed as a positive signal in the short term.

The weekend low of $112,000 serves as a reminder of the risks associated with investing in cryptocurrencies. Despite their long-term potential and growing interest in digital assets, Bitcoin and other cryptocurrencies remain highly volatile and subject to sharp price swings that can result in significant losses. Traders are advised to exercise caution, diversify their portfolios, and consider their personal risk tolerance before making investment decisions in the crypto space.

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

Below are the short-term trading strategies and conditions.

Bitcoin

Buy Scenario

Scenario #1: I plan to buy Bitcoin today at the entry point around $114,500, targeting a rise to $115,800. I'll exit long positions and sell on a bounce near $115,800. Before entering on a breakout, ensure that the 50-day moving average is below the current price and the Awesome Oscillator is in positive territory.

Scenario #2: Bitcoin can also be bought from the lower boundary at $114,000 if there's no market reaction to its breakout downward, aiming for a rebound to $114,500 and $115,800.

Sell Scenario

Scenario #1: I plan to sell Bitcoin today at the entry point around $114,000, targeting a drop to $112,700. I'll exit short positions and buy on a bounce near $112,700. Before entering on a breakout, make sure that the 50-day moving average is above the current price and the Awesome Oscillator is in negative territory.

Scenario #2: Bitcoin can also be sold from the upper boundary at $114,500 if there's no market reaction to its breakout upward, targeting a return to $114,000 and $112,700.

Ethereum

Buy Scenario

Scenario #1: I plan to buy Ethereum today at the entry point around $3557, targeting a rise to $3619. I'll exit long positions and sell on a bounce near $3619. Before entering on a breakout, ensure that the 50-day moving average is below the current price and the Awesome Oscillator is in positive territory.

Scenario #2: Ethereum can also be bought from the lower boundary at $3519 if there's no market reaction to its breakout downward, aiming for a rebound to $3557 and $3619.

Sell Scenario

Scenario #1: I plan to sell Ethereum today at the entry point around $3519, targeting a drop to $3460. I'll exit short positions and buy on a bounce near $3460. Before entering on a breakout, make sure that the 50-day moving average is above the current price and the Awesome Oscillator is in negative territory.

Scenario #2: Ethereum can also be sold from the upper boundary at $3557 if there's no market reaction to its breakout upward, targeting a return to $3519 and $3460.