The month has started with an active sell-off. The fact that October, traditionally considered a good month for Bitcoin, closed in the negative, has led to aggressive selling in the cryptocurrency market during today's Asian session. Bitcoin briefly fell to around $107,300, while Ethereum dropped below $3,700. Traders whose expectations were not met are showing signs of disappointment, leading to increased pressure on digital assets.

Amidst the pessimistic sentiment dominating the market, there is some positive data. According to a report, the total monthly trading volume of stablecoins on Ethereum surged to a historical high in October this year, as traders increasingly sought yield amid the market downturn. This phenomenon underscores the growing role of stablecoins as a safe haven during turbulent times. Traders looking to preserve their capital are increasingly turning to these digital assets, which are reliably pegged to fiat currencies, to minimize the volatility risks associated with other cryptocurrencies. Notably, the increased transactional activity with stablecoins may also indicate heightened interest in cryptocurrencies from institutional investors, who view them as a safer way to interact with digital assets.

Data shows that the total trading volume of Ethereum-based stablecoins in October reached $2.82 trillion, surpassing the previous historical high of $1.94 trillion set in September. This translates to a 45% increase over the month. The leader was USDC from Circle, with a monthly volume of $1.62 trillion, followed by USDT at $895.5 billion. Meanwhile, the MakerDAO stablecoin DAI ranked third, with a volume of $136 billion, down from $141.2 billion in September and well below the $470.7 billion seen in May.

For the cryptocurrency market, I will continue to rely on any major pullbacks of Bitcoin and Ethereum, expecting the continued development of a bullish market in the medium term, which remains intact.

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

Bitcoin

Buy Scenario

• Scenario No. 1: I plan to buy Bitcoin today upon reaching the entry point around $107,800, targeting a move to $109,000. Near $109,000, I intend to exit my buy positions and sell immediately on the bounce. Before buying on the breakout, make sure that the 50-day moving average is below the current price and the Awesome indicator is above zero.
• Scenario No. 2: I can also buy Bitcoin from the lower boundary at $106,900 if there is no market reaction to its breakout in the opposite direction towards levels $107,800 and $109,000.

Sell Scenario

• Scenario No. 1: I plan to sell Bitcoin today upon reaching the entry point around $106,900, targeting a decline to $105,500. Near $105,500, I will exit my sales and buy immediately on the bounce. Before selling on the breakout, make sure that the 50-day moving average is above the current price and the Awesome indicator is below zero.
• Scenario No. 2: I can also sell Bitcoin from the upper boundary at $107,800 if there is no market reaction to its breakout in the opposite direction towards levels $106,900 and $105,500.

Ethereum

Buy Scenario

• Scenario No. 1: I plan to buy Ethereum today upon reaching the entry point around $3,742, targeting a move to $3,839. Near $3,839, I will exit my buy positions and sell immediately on the bounce. Before buying on the breakout, make sure that the 50-day moving average is below the current price and the Awesome indicator is above zero.
• Scenario No. 2: I can also buy Ethereum from the lower boundary at $3,674 if there is no market reaction to its breakout in the opposite direction towards levels $3,742 and $3,839.

Sell Scenario

• Scenario No. 1: I plan to sell Ethereum today upon reaching the entry point around $3,674, targeting a decline to $3,609. Near $3,609, I will exit my sales and buy immediately on the bounce. Before selling on the breakout, make sure that the 50-day moving average is above the current price and the Awesome indicator is below zero.
• Scenario No. 2: I can also sell Ethereum from the upper boundary at $3,742 if there is no market reaction to its breakout in the opposite direction towards levels $3,674 and $3,609.