Bitcoin has dropped from its all-time high of $123,000 and is currently trading at $117,000, which only increases its appeal. Ethereum has also fallen back below the 3,000-dollar level, after attempting to break above 3,200 just yesterday. Considering the intense rally in the cryptocurrency market in recent days, such a correction comes as no surprise.

Meanwhile, the U.S. Federal banking agencies have released a statement outlining how existing regulations apply to banks that hold cryptocurrency on behalf of clients. This is the latest move by regulators aimed at clarifying how banks can interact with the growing digital asset industry.

In a statement published Monday, the Federal Reserve Board of Governors, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation emphasized the importance of ensuring the safekeeping of cryptocurrencies. They noted that the statement does not establish any new supervisory expectations. The agencies stated that banking institutions should assess the risks—as they would with any new products and services—including cybersecurity, control over keys, and other sensitive information.

"A banking organization considering offering crypto-asset custody services should take into account the evolving nature of the crypto-asset market, including the underlying technology, and implement a risk management framework that appropriately adapts to those risks," the agencies said.

It's worth recalling that this week, known as "Crypto Week," the U.S. House of Representatives is reviewing the "Guiding and Enabling National Innovation for U.S. Stablecoins" (GENIUS) Act and the Digital Asset Market Transparency Act (Clarity). Their adoption would mark a new step in the development of the digital asset industry in the U.S. and globally.

Going forward, I will continue to act based on any large pullbacks in Bitcoin and Ethereum, anticipating further development of a medium-term bullish market trend, which remains intact.

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

Bitcoin

Buy Scenario

Scenario #1: I plan to buy Bitcoin today upon reaching the entry point near $117,800, targeting a rise to $120,100. Around $120,100, I will exit long positions and open short trades on a bounce.

Before buying on a breakout, make sure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.

Scenario #2: Buying Bitcoin is also possible from the lower boundary at $116,600, if there is no strong market reaction to a breakout, targeting a move back to $117,800 and $120,100.

Sell Scenario

Scenario #1: I will sell Bitcoin today upon reaching the entry point at $ 116,600, targeting a drop to $114,600. I plan to exit short positions at 114,600 and buy on a rebound.

Before selling on a breakout, make sure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.

Scenario #2: Selling Bitcoin is also possible from the upper boundary at $117,800, if there is no strong reaction to the breakout, targeting a decline toward $116,600 and $114,600.

Ethereum

Buy Scenario

Scenario #1: I will buy Ethereum today upon reaching the entry point near $2,986, targeting a rise to $3,034. I plan to exit long positions at 3,034 and sell on a bounce.

Before buying on a breakout, make sure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.

Scenario #2: Buying Ethereum is also possible from the lower boundary at $2,959, if there is no strong market reaction to the breakout, targeting a move back to $2,986 and $3,034.

Sell Scenario

Scenario #1: I will sell Ethereum today upon reaching the entry point at $2,959, targeting a drop to $2,896. I plan to exit short positions at 2,896 and buy on a rebound.

Before selling on a breakout, make sure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.

Scenario #2: Selling Ethereum is also possible from the upper boundary at $2,986, if there is no strong reaction to the breakout, targeting a decline toward $2,959 and $2,896.