Here is the trading signal analysis for Bitcoin (BTC) for today, May 7, 2025, based on the latest market information and technical indicators from available sources:
Current Bitcoin Market Summary
BTC/USD Price: Around $96,876 (up 0.07% in the last 24 hours).
BTC/USDT Price: Around $94,303.66 (up 0.14% in the last 24 hours).
Volatility: The crypto market remains volatile, with current BTC volatility estimated at about 1.55% (BTC/USD) and 0.98% (BTC/USDT).
Market Structure: The long-term trend remains bullish, supported by institutional fund flows and the weakening US Dollar. However, there are short-term correction signals in some timeframes.
Technical Analysis and Trading Signals
Price Structure (4-Hour Timeframe):
Bullish Structure: Bitcoin shows higher highs and higher lows, indicating a strong upward trend. Prices are currently above the 50% range of the last structure, which is a positive signal for swing traders.
Support and Resistance:
Support: Area $90,000 - $94,800 (including the bullish order block zone at $94,800-$95,400).
Resistance: Zone $94,500 - $96,400 (including order block and potential bearish divergence). Breaking $94,500 could open the way to $97,400 or $98,700.
Signal: There is potential for a short-term retracement to the area of $94,800-$95,400 before continuing to rise, supported by the bullish order block.
Technical Indicators:
RSI (Relative Strength Index):
On the 4-hour timeframe, RSI is approaching the neutral to overbought zone (near 70), indicating bullish momentum but potentially correcting if prices touch strong resistance.
On the 12-hour timeframe, bearish divergence is detected, indicating the possibility of profit-taking or correction. Traders are advised to be cautious.
MACD: On the daily timeframe, MACD shows a buy signal, although the histogram on the weekly timeframe is slightly bearish, indicating a slowdown in long-term momentum.
Moving Averages:
Short-term MA (TEMA 30 and TEMA 50) is trending upward, supporting short-term bullish momentum.
The overall rating from moving averages is strong buy.
Oscillator: The current oscillator rating is neutral, with some indicators showing buy signals (7/10) on the 1-hour timeframe.
Price Patterns and Important Signals:
Breaker Block and Order Block: Prices have recently reacted strongly in the breaker block area around $93,950 (support) and show bullish momentum. This supports a buy strategy in that area with profit targets at the liquidity level of $97,400 or higher.
Bearish Divergence: Detected on the 4-hour and 12-hour timeframes, indicating potential correction to support areas of $90,000 or $88,000 if prices fail to break resistance at $96,400.
Symmetrical Triangle: On the 3-day timeframe, prices are forming a symmetrical triangle pattern, which could be a continuation (bullish) or reversal pattern depending on the breakout direction. A recent fake-out in the support area indicates a potential bullish trap for sellers.
Today's Trading Signal
Based on the analysis above, here are the trading signal recommendations for BTC/USD on May 7, 2025:
Buy Signal:
Entry: In the support area of $94,800 - $95,400 (coinciding with the bullish order block).
Take Profit:
TP1: $97,400 (short-term liquidity).
TP2: $98,700 (if resistance at $94,500 is broken).
Stop Loss: Below $94,479 or $94,000 to minimize risk.
Reason: The bullish structure remains strong, supported by confirmed support in the breaker block and technical indicator momentum.
Sell Signal (Sell/Short):
Entry: If prices show strong rejection in the resistance area of $96,400 with confirmation of bearish candlestick or minor support breakdown.
Take Profit:
TP1: $94,800 (nearest support area).
TP2: $90,000 (if the bearish trend continues).
Stop Loss: Above $96,876 or $97,000 to limit losses.
Reason: Bearish divergence on the 4-hour and 12-hour timeframes indicates potential profit-taking or short-term correction.
Neutral Signal:
If prices consolidate between $94,500 - $96,400 without confirmation of a breakout or breakdown, it is advisable to wait for clearer signals from candlestick patterns or indicators.
Fundamental Factors to Consider
Institutional Fund Flows: The recent price increase has been driven by inflows of institutional funds and Bitcoin ETFs. However, a net outflow of $1.015 billion in the last 7 days indicates short-term negative sentiment.
Weakening US Dollar: Supports the upward trend of Bitcoin as a hedge asset.
Market Volatility: The crypto market remains vulnerable to changes in sentiment, especially ahead of macroeconomic events such as Fed interest rate reports.
Halving Effect: Although the last halving has occurred, its impact on the reduction of new supply still supports a long-term bullish outlook.
Trading Strategy
Swing Trading: Utilize support at $94,800-$95,400 for buy positions with a short-term target of $97,400. Watch for resistance at $96,400 for potential short if there is strong rejection.
Scalping: Focus on the 30-minute or 1-hour timeframe for intraday trading, with entries in order block areas and tight stop losses (e.g., 0.5% below support).
Risk Management: Use a minimum risk-reward ratio of 1:2. Limit exposure per position to a maximum of 1-2% of capital to manage high volatility.
Risk Warning
The crypto market is highly volatile, and prices can change rapidly. Always conduct thorough research and consider your risk tolerance before trading.
This information is not investment advice, but rather an analysis based on technical data and market sentiment. Consult with a financial advisor if needed.
#TradeStories #BitcoinReserveDeadline
