5.30 Evening Bitcoin (BTC) and Ethereum (ETH) Market Analysis: Continuing to Explore the Bottom

As evening approaches, the Bitcoin (BTC) short position established in the afternoon at 106500 successfully took profit. After BTC dipped to around 104500, it began to rebound, and our previously suggested short-term long strategy has also been effectively validated. Currently, BTC price has dropped below 106000 and is entering a phase of consolidation. The movement of Ethereum (ETH) is similar to that of BTC, first dipping to a low of 2586 and then rebounding, currently fluctuating around 2620.

From a daily perspective, the price continues to fiercely contend around the lower shadow area. After consecutive bearish candles, bulls are facing strong pressure from bears, and the Bollinger Bands (BOLL) channel is continuously narrowing, indicating that market volatility may increase, with fundamental factors becoming increasingly significant in influencing the market.

On the four-hour chart, after BTC touched a low near 104500 early in the morning, the price mainly hovered near the lower band throughout the day. Although both bulls and bears have had their victories, the resistance level above has significantly lowered. While the support below is relatively strong, maintaining a range-bound pattern, the middle and lower bands of the Bollinger Bands continue to tilt downward, and the rebound momentum is insufficient, leaving significant downward pressure. Therefore, it is judged that the short-term downtrend has not yet ended. With the key level of 105000 being breached, the important support level has moved down to 102500.

On the fundamental side, close attention should be paid to the performance of the US stock market at the evening open. If the US stock market opens high again, the recovery of bullish forces in the market will still take a long time.

Evening Trading Suggestions:

- Bitcoin (BTC): It is recommended to attempt to short around 106000, targeting 104500; if it breaks below 104500, pay attention to the continuation of the trend.

- Ethereum (ETH): It is recommended to establish short positions around 2640, with a target of 2550; if it breaks below 2550, seize the subsequent market movements.