Morning Thoughts on 5.20
From the current market perspective, Bitcoin is clearly in a strong upward channel, with a high probability of continuing its rise in the short term. However, from a technical indicator analysis, on the 4-hour chart, the price has already broken through the upper Bollinger Band, which is often one of the signals indicating that the market has entered an overbought state; at the same time, the KDJ indicator also shows signs of being overbought. In this situation, the market is very likely to encounter selling pressure from large holders, leading to a trend reversal. For day traders, a strategy of shorting at highs and going long at lows can be adopted, but it is essential to strictly control position sizes and timely set stop-loss levels to avoid potential sharp volatility risks.
Bitcoin trading strategy: Short around 106800-107800, target around 104500.
Ether trading strategy: Short around 2580-2620, target around 2420-2380.
From the current market perspective, Bitcoin is clearly in a strong upward channel, with a high probability of continuing its rise in the short term. However, from a technical indicator analysis, on the 4-hour chart, the price has already broken through the upper Bollinger Band, which is often one of the signals indicating that the market has entered an overbought state; at the same time, the KDJ indicator also shows signs of being overbought. In this situation, the market is very likely to encounter selling pressure from large holders, leading to a trend reversal. For day traders, a strategy of shorting at highs and going long at lows can be adopted, but it is essential to strictly control position sizes and timely set stop-loss levels to avoid potential sharp volatility risks.
Bitcoin trading strategy: Short around 106800-107800, target around 104500.
Ether trading strategy: Short around 2580-2620, target around 2420-2380.
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ETH
2,477.01
+0.32%
BTC
105,299.98
+0.35%
