BTC Market Analysis 2025.5.21
A bearish candle suddenly appeared when it was only 1.6% away from the historical high, increasing market doubts: Is it a top signal or a washout consolidation?
Core Viewpoint: Leaning towards a washout consolidation before a new high, rather than a trend reversal. As we approach the previous high (108300-109500 USD), the selling pressure from trapped positions increases significantly, and the main force takes the opportunity to clean up weak positions. Unless the price **continuously breaks below the key support of 104500 USD, there is still a possibility of hitting a new high in the short term.
Key Level Analysis:
Resistance Zone: 108300-109500 USD (previous high dense trading area, trapped positions and profit-taking positions resonate);
Bull-Bear Divide: 106500 USD (if it holds, it opens up upside space; otherwise, it faces a pullback);
Strong Support Level: 104500 USD (breaking below may trigger a phase adjustment, targeting a drop to around 104600 USD).
Operation Strategy:
Long positions can be held temporarily, with a stop loss below 104500 USD;
Aggressive traders can buy low in the 104600-106500 USD range, betting on a new high opportunity;
Be cautious of night volatility; if support is quickly broken, decisively exit to avoid deep losses.
The market oscillates between greed and fear, and the current trend tests the holding capacity—sticking to key support is essential to seize breakthrough opportunities.
