Bitcoin and Ethereum experienced a notable pullback after another unsuccessful attempt to rally. Bitcoin could not retest its all-time high, and Ethereum could not surpass the $2900 mark.

U.S. Treasury Secretary Scott Bessent stated yesterday that USD-backed stablecoins could reach a market capitalization of $2 trillion or more. His remarks indicate growing governmental interest in cryptocurrencies, particularly stablecoins, as a potentially vital component of the future financial system. Bessent emphasized that with proper regulation, stablecoins could enhance payment efficiency, reduce transaction costs, and expand access to financial services for millions of people.

He also noted that stablecoins could help broaden the global use of the U.S. dollar and that Congress is advancing legislation requiring such coins to be backed by high-quality assets like U.S. Treasury bonds.

It's worth noting that the U.S. Senate yesterday voted 68 to 30 to pass the Stablecoin Regulation Act, bringing it closer to final approval. If enacted, the legislation could lead to a 10x increase in stablecoin supply over the next four years — up to $2 trillion. As a result, stablecoin issuers may acquire up to $1.6 trillion in U.S. government bonds for their reserves.

As for the medium-term strategy, I will continue to capitalize on deep pullbacks in Bitcoin and Ethereum, anticipating continuing the broader bullish market trend.

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

Bitcoin

Buy Scenario

Scenario 1: Buy Bitcoin today on a break above $108,100, with a target of $108,700. Exit the buy position near $108,700 and open a short on the pullback. Before buying, ensure the 50-day moving average is below the current price and the Awesome Oscillator is in positive territory.

Scenario 2: Buy from the lower boundary of $107,500 if there is no market reaction to its breakout, aiming for a reversal back to $108,100 and $108,700.

Sell Scenario

Scenario 1: Sell Bitcoin today from $107,500, targeting $106,800. Exit shorts at $106,800 and consider buying on the bounce. Confirm that the 50-day moving average is above the current price, and the Awesome Oscillator is in negative territory.

Scenario 2: Sell from the upper boundary at $108,100 if there is no follow-through breakout, targeting $107,500 and $106,800.

Ethereum

Buy Scenario

Scenario 1: Buy Ethereum today from $2785, targeting $2845. Exit long positions at $2845 and open short positions on the rebound. Confirm that the 50-day moving average is below the current price and that the Awesome Oscillator is in positive territory.

Scenario 2: If there is no reaction to a breakdown, buy from the lower boundary at $2750, targeting $2785 and $2845.

Sell Scenario

Scenario 1: Sell Ethereum today from $2750, targeting $2694. Exit short trades at $2694 and buy immediately on a bounce. Confirm that the 50-day moving average is above the current price, and the Awesome Oscillator is in negative territory.

Scenario 2: Sell from the upper boundary at $2785 if there is no reaction to a breakout, targeting $2750 and $2694.