Crypto Circle Expert: On May 10, Bitcoin is extremely overbought; the bulls are strong, but the risk of a correction cannot be ignored! Latest market analysis reference
Bitcoin's current price is 103,000. It is now 4 AM Beijing time. I chose to follow the trend and made a short-term long position, but I don't dare to hold it for too long. I captured 1,500 points and decided to take profit. My principle in trading is survival first; find the stop-loss point before considering profits. Many people have been liquidated in the market, especially since we are currently in an upward trend. Do not rush to short, and definitely do not open long positions casually. Maintain a cautiously optimistic attitude.
The daily candlestick chart shows a high of 104,400. The EMA trend indicator shows a larger upward trend. The bullish stretch continues as the EMA15 trend fast line has broken 96,000 and is still being pulled up. The bottom support is expected to reach around the 100,000 mark soon. In the short term, the main force will consolidate at a high level. The MACD has continuously increased its volume, and the DIF and DEA are expanding upward at a high level. The candlestick has dropped back to the upper Bollinger Band around 102,750. After a long time of divergence and extreme overbought conditions, a correction is also quite normal. As for where the correction will go, we will consider whether to continue going long after the price approaches the support point.
On the four-hour candlestick chart, an ascending triangle formation has formed, and a doji has appeared, signaling a potential reversal. In this high-level consolidation, there is a high probability of forming a top. The EMA trend indicator is expanding upwards, and the EMA15 fast line support has reached 100,800, indicating a typical continuously rising bullish trend. The MACD has continuously increased its volume but is starting to reduce the increment. The candlestick top has diverged from the trend, and coupled with the candlestick returning to the Bollinger Band channel, it is facing resistance at the upper Bollinger Band pressure level of 105,100. The mid-band is focused on 99,000, and the entry points for long and short can be used as reference.
Short-term trading ideas: The market is never 100% certain, so always set a stop-loss. Safety is the priority; small losses with large gains are the goal, especially when breaking key resistance and support levels—stop-losses must be respected, and do not hold positions against the trend.
For northern entry points, the trial range is 100,500 to 100,000, with a defense at 99,500, stop-loss at 500 points, and targets set at 102,000 to 103,000, and if broken, look towards 104,000.
For southern entry points, the trial range is 104,000 to 104,500, with a defense at 105,000, stop-loss at 500 points, and targets set at 103,000 to 102,000, and if broken, look towards 101,000.
Specific operations should be based on real-time market data. For more information, you can consult the author. The article may have a delay in publication; it is recommended for reference only, and the risk is borne by the reader. $BTC