Evening Thoughts on May 12: Approach with Caution on Shorts
In the afternoon, after the price of the currency reached a high point and then retreated under pressure, the range of market fluctuations has shifted upward, but the overall trend still needs some accumulation before changing. Today, the tariff issue has eased, and the U.S. stock market is likely to open with an upward momentum, while our cryptocurrency market will likely follow and make a push upward; however, considering that the positive data has already been digested during the day, there is still some resistance for the market to break through the 106,000 mark again.
Looking at the current chart, the four-hour chart is oscillating around the upper middle band of the Bollinger Bands, and with the recent high reaching a correction, the short-term support has moved up to the 103,500 level. This round of fluctuations has not led to further highs, and the bulls will reduce volume. The larger cycle's upward momentum will face a significant correction. Currently, the support at the bottom is focused on the resistance points of 103,500-102,000. The second support serves as a signal for a deep pullback. The evening strategy remains cautious towards shorts.
Bitcoin can be shorted in the range of 104,500-105,000, with a lookout near 102,000. Ethereum can be bought near 2,500, with a target around 2,650.
