5.22 Morning Market Analysis
(1 Hour Level) Prices have consistently closed positively along the upper Bollinger Band, with the channel showing a trumpet-shaped expansion. The middle band continues to rise, indicating strong bullish trends and increased volatility. The KDJ indicator has diverged upward after a short-term golden cross, and the MACD red momentum bars are consistently amplifying above the zero axis, confirming the bullish dominance in market sentiment. It should be noted that the KDJ indicator's J line has reached the overbought range (J > 100), indicating a potential technical correction in the short term. However, the upward opening of the Bollinger Bands has not narrowed, suggesting the trend has not reversed; the correction may serve as an opportunity for bulls to gather strength.
From the market characteristics, the pattern of 'rising highs + pullback corrections' has formed a regular rhythm, with each round of pullback attracting bullish capital inflow, reflecting the market's recognition of the upward trend. Although bears attempt to counterattack based on overbought signals, the volume has not effectively expanded, and the pullback is essentially a normal consolidation within the trend. The operational strategy suggests a core idea: rely on key support levels to gradually build long positions, remain cautious of overbought pullbacks but avoid easily guessing the top, in order to manage risk with stop-losses.
Bitcoin (BTC): Entry Point: Pullback to around $109,300 (referencing the middle Bollinger Band or previous low support) to gradually go long; Target Point: First target at $112,000 (previous high resistance area), and if broken, look for higher ranges; Stop-Loss: Exit decisively if it falls below $108,500 (below recent low).
Ethereum (ETH): Entry Point: Pullback to around $2,550 (4-hour MA30 moving average support) to build long positions; Target Point: First target at $2,650 (daily level neck line); Stop-Loss: Exit if it falls below $2,500 (support of the upward trend line).
Strategy Logic: Short-term overbought does not alter the mid-term upward trend; pullbacks are opportunities for bulls to optimize their positions. Relying on key support levels allows for a balance between risk and reward. Maintain the rhythm of 'bullish but not chasing highs, decisive following on pullbacks' to seize certain opportunities in the main rising wave.
