5.8 Afternoon Thoughts

From a technical analysis perspective, the current market shows a complex situation. The daily chart has closed with three consecutive bullish candles, but in the last two days, the candlesticks have long lower shadows, indicating some support below. However, this also reflects significant pressure above, with both bulls and bears engaged in fierce competition at high levels. The Bollinger Bands are in a contracting state, suggesting that the market is accumulating strength and may soon face a directional choice.

In terms of indicators, the KDJ three lines have formed a golden cross and are diverging upward, indicating that short-term bullish strength has increased; the MACD dual lines are sticking at a high level, showing that both bulls and bears are evenly matched, and the direction is still unclear. It is worth noting that the current trading volume has significantly decreased, and as prices consolidate at high levels, the divergence between volume and price is becoming prominent. The morning market once again surged past the 980-point level; this trend is very likely a trap for naive buyers, and blindly chasing the rise may lead to a passive position. Therefore, the afternoon trading strategy should focus on short positions, ensuring to set stop losses to avoid enlarging losses due to market fluctuations; one must not blindly hold positions.

Bitcoin trading strategy: Sell near 99000-99800 during the rebound, targeting around 96500.

Ethereum trading strategy: Sell near 1865-1900 during the rebound, targeting around 1830.