Bitcoin and Ethereum attempted a modest recovery during the first half of the day. However, the gains were limited to minor upward corrections, after which selling pressure returned to the cryptocurrency market.

Meanwhile, Japan delivered a positive surprise today. Japanese Prime Minister Sanae Takaichi addressed the WebX 2026 conference in Tokyo via video message, reaffirming the government's commitment to developing the digital asset industry. According to her, government support will include expanded funding through public investment funds and financial institutions, as well as a relaxation of regulatory requirements designed to help startups scale their businesses, hire employees, and expand into larger markets. Takaichi emphasized that she would not provide specific timelines for individual measures, presenting Web3 not as a standalone cryptocurrency initiative but as part of Japan's broader innovation strategy.

It is worth recalling that Japan has already established a framework for state support. The Comprehensive Startup Support Package, launched in May 2025, builds on the country's 2022 Five-Year Startup Development Plan and aims to increase annual startup investment to approximately £10 trillion by fiscal year 2027. Official government documents also outline more ambitious long-term objectives, including the creation of 100 unicorn companies and 100,000 startups nationwide.

At the same time, Japan continues to advance cryptocurrency tax reform, which proposes introducing a flat 20% tax rate on digital asset gains instead of the current progressive tax system, as well as allowing the launch of cryptocurrency exchange-traded funds (ETFs).

For the industry, these developments represent a favorable, although not necessarily rapid, path forward. While the strategic direction has been set at the highest political level, the actual implementation timeline and the amount of capital that ultimately reaches early-stage startups will depend on regulatory authorities and government ministries.

As for short-term trading, today's strategy and trading conditions are outlined below.

Bitcoin

Buy Scenario

Scenario No. 1: Buy Bitcoin if the price reaches the entry level around $63,100, targeting a move toward $63,600. Near $63,600, I plan to close long positions and immediately open short positions on a rebound. Before entering a breakout trade, make sure that the 50-day Moving Average is below the current price and the Awesome Oscillator is above the zero line.

Scenario No. 2: Buy Bitcoin from the $62,800 support level if the market fails to confirm a breakout below this level, targeting $63,100 and $63,600.

Sell Scenario

Scenario No. 1: Sell Bitcoin if the price reaches the entry level around $62,800, targeting a decline toward $62,200. Near $62,200, I plan to close short positions and immediately open long positions on a rebound. Before entering a breakout sell trade, make sure that the 50-day Moving Average is above the current price and the Awesome Oscillator is below the zero line.

Scenario No. 2: Sell Bitcoin from the $63,100 resistance level if the market fails to confirm a breakout above this level, targeting $62,800 and $62,200.

Ethereum

Buy Scenario

Scenario No. 1: Buy Ethereum if the price reaches the entry level around $1,785, targeting a move toward $1,807. Near $1,807, I plan to close long positions and immediately open short positions on a rebound. Before entering a breakout trade, make sure that the 50-day Moving Average is below the current price and the Awesome Oscillator is above the zero line.

Scenario No. 2: Buy Ethereum from the $1,772 support level if the market fails to confirm a breakout below this level, targeting $1,785 and $1,807.

Sell Scenario

Scenario No. 1: Sell Ethereum if the price reaches the entry level around $1,772, targeting a decline toward $1,747. Near $1,747, I plan to close short positions and immediately open long positions on a rebound. Before entering a breakout sell trade, make sure that the 50-day Moving Average is above the current price and the Awesome Oscillator is below the zero line.

Scenario No. 2: Sell Ethereum from the $1,785 resistance level if the market fails to confirm a breakout above this level, targeting $1,772 and $1,747.