BTC Daily Market Interpretation (May 2nd)

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Summary:

The larger trend remains bullish, while we look for buying opportunities in the smaller time frames, which is referred to as trading small within a larger trend. As we approach the psychological level of 100,000, there is significant resistance above, and bearish sentiment is strong across major exchanges and communities. However, the main players are still reluctant to let prices drop. The risk of shorting on the left side is high, so it's better to wait for opportunities on the right side.

In the smaller timeframe, a small double top formed around 97,300, with the neckline near 63,000. A breakdown below this level could trigger a pullback, but special attention should be paid to whether the previous resistance at 95,400 turns into effective support. If we reach this level and there is clear support, you can protect your short position with cost averaging. A more cautious approach would still be to stick to the original plan: wait for a breakdown below 95,400 before entering on the right side.

Until this level is broken, keep an eye on the resistance above. I still believe there will be a larger pullback towards 98,000-100,000 before we see a breakout, targeting the two levels of 91,700 and 88,600.

Our long position that broke out from 95,400 had a maximum floating profit of 2,000 points yesterday, always missing the target of 3,000 points by 1,000. But regardless, it’s better than holding a short position, which many would consider a substantial profit…

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