5.8 Morning Bitcoin and Ethereum Market Analysis and Trading Suggestions
Bitcoin once again demonstrated strong upward momentum during the morning session today, successfully breaking through the 98000 mark, continuing the recent one-sided upward trend. The current market momentum remains good, and the hourly technical indicators have begun to diverge, indicating sustained bullish strength. Therefore, during the morning session, we can take a long position in line with the trend and observe the continuation of the bullish trend.
In contract trading, it is important to remain calm and stick to discipline, rather than blindly pursuing short-term profits. The real winners are those who can remain rational amidst market fluctuations and continuously improve their risk management skills. In the early hours, with the opening of the Federal Reserve interest rate meeting, the price indeed experienced a slight dip, reaching around 95700, with a retracement of nearly 1000 points. Under our previous bearish outlook, we successfully captured this retracement, gaining nearly 800 points. Subsequently, the price stabilized at the bottom and began to rise, currently approaching 97300.
From a technical indicator perspective, Bitcoin is currently operating between the middle and upper bands of the Bollinger Bands, with the bands opening wider, indicating a bullish dominance and strong upward trend. In the KDJ indicator, the K line is above the D line, and although the J value shows overbought signals, the bullish trend has not yet ended. In terms of the MACD indicator, the DIF is above the DEA, and the histogram is shortening, indicating a weakening of bearish strength and an accumulation of bullish strength. Overall, the market is biased towards bullish, and prices are expected to continue rising in the short term. However, due to the overbought signal from the KDJ indicator, we need to be aware of potential retracement risks.
Trading Suggestions:
Bitcoin: It is recommended to go long near 97500, with a target towards 99500. At the same time, closely monitor market dynamics and changes in technical indicators to flexibly adjust strategies.
Ethereum: Consider going long near 1810, with a target towards 1870. Similarly, remain vigilant and be prepared to respond to market fluctuations.
