5.20 Initial Thoughts Analysis in the Early Morning
Last night, the US stock market exhibited a dramatic trend of opening lower and closing higher. The main capital's manipulation to induce short positions is a classic case of psychological warfare, and many short-selling investors may have inadvertently fallen into a trap. If one is holding a position with unrealized losses and is unwilling to stop-loss and exit, it may be worth considering moderate averaging down, while strictly setting stop-loss levels and patiently waiting for the opportunity of a reversal in the bearish market. After all, as long as the market has not formed a unilateral upward trend, there remains the possibility of adjustments.
Recently, the market rapidly surged and broke through MA(7) and MA(30), but the latest candlestick indicates a significant price decline, with a larger body suggesting the market may face short-term pressure.
In the short term, although the overall trend shows the market is in an upward channel, the recent formation of a top pattern and bearish engulfing pattern, as well as three external downward reversal patterns, have increased the risk of a pullback. In the short term, it may continue to test the support around MA(7) and the previous low near 102000.
Bitcoin: Short around 105200-105800, target 103000-104000
Ethereum: Short around 2480-2540, target 2400-2350
