FX.co ★ Cryptocurrency Trading Recommendations – July 8th (U.S. Session)

Bitcoin and Ethereum declined sharply during the first half of the day, with several factors contributing to the sell-off. Bitcoin is trading around $62,000, while Ethereum is hovering near $1,740.

The cryptocurrency market came under heavy selling pressure after U.S. President Donald Trump stated that the ceasefire with Iran had effectively collapsed. "In my opinion, the ceasefire with Iran is no longer in effect and has effectively come to an end. There is no point in continuing negotiations with Tehran. I no longer want anything to do with them because they are scum," Trump said, adding harsh criticism of the Iranian leadership and describing them as "sick people." He also confirmed that the United States had carried out major strikes against Iran overnight in response to missile attacks on ships near the Strait of Hormuz, accusing Iran of "playing dirty."

The cryptocurrency market reacted immediately and aggressively. Bitcoin fell by more than 3%, dropping to around $61,691 after previously trading above $64,000. The latest escalation involving Iran also fits a broader pattern that has been evident throughout the year: the market has reacted almost reflexively to similar headlines—whether it was Trump's May warning that "the clock is ticking," which triggered a decline toward $76,500, the June sell-off following reports of a helicopter being shot down, or the temporary rally after the signing of a preliminary memorandum in mid-June.

Each time, the pattern has been the same: escalation weighs heavily on the cryptocurrency market while pushing oil prices higher, whereas de-escalation produces the opposite effect. As long as the conflict remains suspended between renewed escalation and a possible return to negotiations, the market is likely to remain highly sensitive to every new headline coming out of the White House.

As for short-term trading, the strategy and trading conditions are outlined below.

Bitcoin

Buy Scenario

Scenario #1: I plan to buy Bitcoin today if it reaches the entry level around $62,500, with a target at $63,500. Around $63,500, I plan to close long positions and immediately open short positions 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 the zero line.

Scenario #2: Bitcoin may also be bought from the $62,000 support level if a breakout below this level fails, targeting $62,500 and $63,500.

Sell Scenario

Scenario #1: I plan to sell Bitcoin today if it reaches the entry level around $62,000, with a downward target at $60,700. Around $60,700, I plan to close short positions and immediately open long positions 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 the zero line.

Scenario #2: Bitcoin may also be sold from the $62,500 resistance level if a breakout above this level fails, targeting $62,000 and $60,700.

Ethereum

Buy Scenario

Scenario #1: I plan to buy Ethereum today if it reaches the entry level around $1,755, with a target at $1,773. Around $1,773, I plan to close long positions and immediately open short positions 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 the zero line.

Scenario #2: Ethereum may also be bought from the $1,742 support level if a breakout below this level fails, targeting $1,755 and $1,773.

Sell Scenario

Scenario #1: I plan to sell Ethereum today if it reaches the entry level around $1,742, with a downward target at $1,719. Around $1,719, I plan to close short positions and immediately open long positions 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 the zero line.

Scenario #2: Ethereum may also be sold from the $1,755 resistance level if a breakout above this level fails, targeting $1,742 and $1,719.