Bitcoin has recovered all losses from the previous day and reached a monthly high, trading around $94,000 at the time of writing. Ethereum has also broken above $3,000.

The sharp rise in the cryptocurrency market occurred yesterday after Bank of America (BofA) recommended that investors allocate 4% of their portfolios to cryptocurrency investments. The bank also advocated for lifting restrictions on banking organizations' investments in crypto ETFs.

BofA's statement was the catalyst that the crypto market had been waiting for. Within hours, major cryptocurrencies like Bitcoin and Ethereum demonstrated a rapid percentage increase, while altcoins surged even higher. Investors interpreted this signal as a green light for broader adoption of cryptocurrencies by institutional players. Several factors can explain BofA's recommendations. Firstly, there is a growing recognition of cryptocurrencies as an asset class with the potential for high returns. Secondly, there has been a decrease in concerns regarding regulatory risks. Thirdly, the bank aims to provide its clients with access to a diversified portfolio that includes assets with low correlation to traditional markets.

The lifting of restrictions on banking organizations' investments in crypto ETFs could open the floodgates for significant capital inflows into the crypto market. This would allow banks to offer their clients a simple and regulated way to invest in cryptocurrencies without worrying about the custody and security of the assets. In the long term, BofA's recommendation and the potential lifting of restrictions for banks could become an essential step toward integrating cryptocurrencies into the financial system. This could lead to sustainable growth in the crypto market and increase its stability.

Regarding intraday strategies in the cryptocurrency market, I will continue to act based on any major pullbacks in Bitcoin and Ethereum, anticipating the continued development of the bullish market in the medium term.

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

Bitcoin

Buying Scenario

• Scenario #1: I will buy Bitcoin today when it reaches the entry point around $94,400, targeting a move to $97,000. I plan to exit my buys around $97,000 and sell immediately on the bounce. Before purchasing on a breakout, ensure the 50-day moving average is below the current price, and the Awesome indicator is above zero.
• Scenario #2: Bitcoin can be bought from the lower boundary at $92,900 if there is no market reaction to its breakout in the opposite direction towards the levels of $94,400 and $97,000.

Selling Scenario

• Scenario #1: I will sell Bitcoin today upon reaching the entry point around $92,900, targeting a decline to $91,000. I will exit my sells around $91,000 and buy immediately on the bounce. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is in the negative zone.
• Scenario #2: Bitcoin can be sold from the upper boundary at $94,400 if there is no market reaction to its breakout in the opposite direction towards the levels of $92,900 and $91,000.

Ethereum

Buying Scenario

• Scenario #1: I will buy Ethereum today upon reaching the entry point around $3,097, targeting a move to $3,159. I intend to exit my buys around $3,159 and sell immediately on the bounce. Before purchasing on a breakout, ensure the 50-day moving average is below the current price, and the Awesome indicator is above zero.
• Scenario #2: Ethereum can be bought from the lower boundary at $3,054 if there is no market reaction to its breakout in the opposite direction towards the levels of $3,097 and $3,159.

Selling Scenario

• Scenario #1: I will sell Ethereum today upon reaching the entry point around $3,054, targeting a decline to $2,988. I will exit my sells around $2,988 and buy immediately on the bounce. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is in the negative zone.
• Scenario #2: Ethereum can be sold from the upper boundary at $3,097 if there is no market reaction to its breakout in the opposite direction towards the levels of $3,054 and $2,988.