The cryptocurrency market crashed significantly last night, with a total of 209,330 people liquidated, with a total liquidation amount of 5 billion, the futures market is bleeding heavily.
BTC dropped in 24 hours, preemptively overdrawing good news. The approval of 401(k) to allocate crypto assets is a positive, but Trump's tariffs remain in effect, and the first meeting between Powell and Trump was described well by Jin Shi as 'talking past each other'! Previously, the stablecoin bill pushed BTC from 109K to 111,980, currently, there are no larger event drivers, price fluctuations and consolidations are considered normal.
Did Bitcoin just crash? Will it fall further? Is it a reshuffle or a reversal of the situation?
Significant outflow of funds from BTC and ETH contracts. Reasons for the crash:
1. Recent gains need to adjust profit-taking;
2. Daily midline tests support;
3. Trader JamesWynnReal is clearly going long, while the main force has been trying to liquidate his position (the opportunity to explode is almost gone, later he closed his position, but the risk remains).
I reminded everyone in yesterday's article (Is the Cryptocurrency Market a Mass Exodus? Will Bitcoin Crash Tonight? I'm All In and Ready to Double! Ethereum Soars, New Highs are Imminent! RATO, PEPE, UNI, TRB Soar 100%!) that it's best for Bitcoin to retest once before starting up.
It indeed retested as expected. Last night I opened a short position after Bitcoin broke the upward trend line at 109024.00, making a huge profit of 214%. I currently plan to distribute take profits. Additionally, I have always reminded to enter long positions at the low of 107700-106300, now there are several hundred points of profit.
Bitcoin (BTC)
Bitcoin dropped sharply after breaking the key support at 106,480, a short-term oversold rebound can go long. Currently testing the 106,400 support/resistance level, if it breaks through or forms a consolidation channel, if it encounters resistance and weakens, consider selling. Pay attention to PCE data impact tonight, the market is cautious as the weekend approaches.
In terms of operations, contracts should exit at highs, and spot positions can be held for the long term at low costs. Bitcoin has risen over 50% from 70,000 and has not officially corrected; after the decline, one can bottom-fish to earn another wave.
Go Long:
Best retest at 103,000 for buying. The second option is to stabilize above 106,600 during the day, looking for a short-term rebound to 108,500. Cautiously monitor 105,000 for buying.
Short Sell:
It is not recommended to enter directly; wait for the daily line to fluctuate near 110,000 to short. Hourly line retesting at 108,000, bearish OB signal to short.
Ethereum (ETH)
ETH spot holdings are stable, bullish trend remains unchanged, ETH/BTC exchange rate stays strong, the 4H line is still running on the upper track, quickly retracted after touching the mid-track. Market trends are dominated by the main force's sentiment, liquidation direction is arbitrary. BTC needs to decline further, affecting ETH prices, last night ETH held at 2600, this morning it touched 2556.
Trend characteristics: non-slow volume decline, but instant spikes and quick retractions. During the day, it rebounded to 2648 (near 0.50), and the 2600 support is easy to break again.
Review Altcoins
ORCA:
Recommended price 2.95, peaked at 3.29, an increase of 11%
OG:
First internal recommended price 4.233, public recommended price 5.31, peaked at 6.2. The first continuously recommended token recently, the initial recommendation had a maximum increase of 46%, the second recommendation had a maximum increase of 17%.
Altcoins have not fully started, focus on two major tracks:
1. Ethereum ecosystem, recommend $UNI and $AAVE;
2. MEME sector, significant pullback after the last surge, the next wave of market looks bullish, recommend $DOGE and $PEPE. After the adjustment ends, Ethereum's target price is $3000, expected to be achieved soon!
On-chain:
$CA:
On-chain continuous range oscillation, belongs to the washout stage. The first wave of upward pressure is considerable, and after digestion, another rise is expected. Alpha's launch expectations (similar to $B, launching after the trading competition) are a potential positive. Support from BSC officials and Four continues; it is recommended to hold patiently, and add positions when retesting the support line.
$BUBB:
Bottom triangular consolidation, belongs to a planned washout. A large bullish breakout can be gambled. The downside risk is at most a halving to zero, with an upward potential of three times starting, initially targeting 10M, with 2M+ to build positions.
$TRENCHES:
From 2M bottom-fishing, now at 3.3M, if 3M support holds, continue to be bullish. Short-term bullish outlook for May 30/31.
