Bitcoin Market Trend Analysis 20250520

Yesterday during the day, I was watching Bitcoin to potentially form a large bearish candlestick at the daily level, which was about to engulf the bullish candlestick from the previous day. Unexpectedly, after the US stock market opened in the evening, the price surged rapidly, and it has now returned to around $106,000. The price has been fluctuating up and down at the hourly level without much change, but many people have already lost their positions.

The daily candlestick is a bearish candlestick with a long lower shadow and a short upper shadow, and the trading volume has increased by one-third compared to the previous day. The trend still remains strong, so the price is likely to continue climbing, with this target set at $110,000.

I previously mentioned to pay attention to the decline in the first half of the week and the rise in the second half. The rapid drop and rise yesterday have shortened this time period. Next, we just need to patiently wait for Bitcoin to reach its target before other altcoins can catch up.

At the hourly level, the upward movement is still driven by the 8-hour momentum. Yesterday, there was a drop that touched the 6-hour EMA52 line, forming a rebound. However, the 6-hour level is also showing signs of insufficient upward momentum, so after hitting a new high, we will see a top divergence pattern at the 6-hour level, which will require a drop and a retest. It is still prudent to enter long positions at the 8-hour and 12-hour EMA52 lines (101380-99300).

Daily resistance levels are 110000-120450-131000, and support levels are 101300-99300-98700-95600-92230.