Recent Market Review

On May 12, Bitcoin first reached a high of $105,720 and then quickly fell back, with a daily drop of 4.7%, marking the largest single-day decline in nearly three months. Over $384 million was liquidated across the network within 24 hours, affecting 144,000 people who were forcibly liquidated. From May 8 to 11, Ethereum showed strong performance, with a rise of over 40% within 72 hours, climbing from about $1,811 to a peak of $2,600, achieving the most remarkable three-day increase since 2019.

Real-time Market

As of now (the specific time is not clear, but it's on May 13), according to data from some platforms, Bitcoin is experiencing certain price fluctuations. Previous data indicated that the trading price of Bitcoin was $100,750, with a 4% drop from the previous day; however, it found temporary support at $101,000. The area around $106,000 is a resistance zone, and the sell-off by long-term holders triggered programmatic trading stop-loss mechanisms, exacerbating the price decline.

Factor Analysis

• Macroeconomic Factors: The Federal Reserve's rate cut in May has raised market concerns about the subsequent CPI data. If inflation rebounds and the dollar strengthens, Bitcoin's price will be under pressure. Additionally, the suspension of tariffs between China and the U.S. has led to a return of funds to the traditional stock market, with Bitcoin's correlation to the S&P 500 reaching as high as 83%, causing it to follow the rhythm of the traditional stock market.

Technical Analysis

After a continuous rise, the market experienced a significant pullback yesterday, with Bitcoin falling from a high of $105,863 to about $100,678, a drop of around $5,000, while Ethereum fell from $2,622 to $2,406, a drop of over 200 points. The higher the price, the greater the divergence between long and short positions, resulting in stronger price fluctuations. In terms of the current trend, the market is moving from high to low, with the Bollinger Bands contracting, and the market trend is gradually shifting to a range. Currently, we need to pay attention to the support below: for Bitcoin, watch $101,600; for Ethereum, watch $2,420 support. If the support holds, the range will end and will likely move upward again. On the upside, watch for Bitcoin at $103,000 and for Ethereum at $2,480 resistance levels. A breakthrough at these levels will increase the upward trend. We are currently focusing on these key positions for breakout handling.

Trading Suggestions

For Bitcoin, consider going long around $101,600 with a target of $103,000.

For Ethereum, consider going long around $2,420 with a target of $2,480.