5.29 Afternoon Bitcoin Market Analysis and Trading Suggestions

1. Short-term trend strengthens, bulls regain initiative

In the early hours of today, after Bitcoin's price dipped to around 106,700, it quickly rebounded, forming a noticeable bottom support structure. This strongly indicates that the market has robust buying strength above the key psychological level of 106,000. Currently, the 108,000 level has been re-established, which is a positive signal. Looking at the subsequent trend, if Bitcoin's price can further break through the short-term resistance level of 109,200, it is expected to open the space for testing the range of 110,500 - 111,800, and the bullish trend may continue and expand.

2. Technical indicators recover, rebound momentum strengthens

From a technical indicator perspective, on the 4-hour level, the RSI (Relative Strength Index) has exited the oversold zone, indicating that the bearish momentum has weakened and the bulls are gradually gaining strength. The MACD (Moving Average Convergence Divergence) has shown initial green bars, and the fast and slow lines are narrowing, demonstrating a significant reduction in downward momentum, and the market's bearish dominance is gradually reversing. If the price can successfully stabilize above 108,800, the KDJ (Stochastic Indicator) is expected to form a golden cross, further confirming the establishment of a short-term bullish trend. Currently, Bitcoin's price has rebounded with an accumulated increase of 800 points, and if the volume continues to support it, it is expected to maintain an upward trend and initiate a new round of rising momentum.

3. Trading Suggestions: Hold long and wait for a rise, focus on key breakthroughs

Based on the current market analysis, it is suggested that investors hold long positions and wait for a rise. For those who previously positioned long at low levels, they can continue to hold. To protect existing profits, the stop-loss can be moved up to 107,200. If the price retraces to the range of 107,500 - 107,800, it can be seen as a good opportunity to add positions, with targets looking towards 109,500 and 110,800 to gain more profit space. At the same time, investors need to closely monitor the breakthrough situation near 109,200. If a strong breakout occurs, it indicates strong bullish momentum, which will occupy a more favorable position, and the subsequent upward space may further open; conversely, if it cannot effectively break through this resistance level, the market may experience some oscillation and adjustment.