Analysis of the 0503 Encryption Market Layout

After the non-farm payroll data was released last night, the market reacted in a subtle manner. Although the data appeared to be bearish, it did not trigger a significant decline at the announcement point; instead, it experienced slight fluctuations before moving upward, reaching a peak of around 97800. This morning, the market saw a retracement, with a low of about 96400. It is noteworthy that the upward momentum after this breakdown is significantly weaker compared to the previous instance, but the overall increase is limited.

From a technical indicator analysis:

- Daily Level: The trading volume has not effectively expanded, the MACD indicator continues to shrink green bars above the zero line, and the KDJ indicator is in the overbought zone with three lines converging, indicating fierce competition between bullish and bearish forces in the market.

- 4-Hour Level: The MACD has shown a top divergence signal, and this technical divergence needs time to gradually repair, appearing more pronounced on the hourly level. Various signs indicate that the bullish momentum is gradually diminishing.

Currently, the bulls have shown signs of fatigue. It is crucial to pay attention to the market differentiation situation on Sunday night. If the market does not exhibit a special situation of 'sideways instead of falling' or continuous divergence, it is highly likely to digest the current technical pressure by retracing to a sideways range. However, given the market inertia over the weekend, trading opportunities brought by the remaining strength of the bulls can still be moderately seized.

Trading Strategy:

When the price of Bitcoin reaches the 97000 - 97500 range, consider shorting, with a target of 95500; if the downward momentum is sufficient, it can look down to 93900.

For Ethereum: Consider shorting in the 1870 - 1900 range, initially targeting 1830; if the bearish force is strong, it could further probe down to 1800.