May 18th Afternoon Bitcoin and Ethereum Market Analysis Mainly Bearish
Today's morning thoughts have been confirmed, the whole network publicly suggested going long this morning, and those who followed have profit potential.
Currently, the cryptocurrency market is showing a relatively tense state, with both long and short sides engaged in fierce competition within a narrow price range, and the market direction remains unclear.
From a technical analysis perspective, on the 4-hour level, the Bollinger Bands are running horizontally, which is typically a signal that the market is in a consolidation phase. The price has tested the middle band resistance of the Bollinger Bands multiple times but has faced significant resistance, making it difficult to achieve an effective breakthrough, indicating that the bears are defending this position firmly. At the same time, the Relative Strength Index (RSI) is in a neutral to weak area, indicating insufficient buying power in the market, making it hard for the bulls to organize an effective counterattack. More critically, the fast and slow lines of the MACD indicator are gradually converging, and a death cross pattern is quietly brewing, which is often an important bearish signal, suggesting that the risk of price decline is gradually increasing.
Looking at the 1-hour level, the Bollinger Bands channel shows a clear narrowing feature, with the distance between the upper and lower bands compressed to a recent low level, which is a strong signal that the market is about to choose a breakout direction. Although the K and D lines in the KDJ indicator showed a brief golden cross during the morning session, indicating some signs of bullish rebound, the J line quickly turned down after reaching the overbought area, showing that the strength of the bulls is relatively weak, and the rebound momentum is limited, making it difficult to sustain a price increase.
Based on the above analysis, for Bitcoin and Ethereum, the following operational strategies are recommended:
Bitcoin: Short in the 104000-104500 range with a target of 102000
Ethereum: Short in the 2500-2530 range with a target of 2400
