The Tug-of-War in the Crypto Market: Will Retail Investors Strike Back or Will Whales Harvest?
The cryptocurrency market is currently caught in a chaotic struggle between bulls and bears.
The technical outlook shows a typical bullish trap pattern: a daily MACD death cross and a volume contraction rebound form a divergence, while a short-lived golden cross appears on the four-hour chart, but insufficient volume restricts the rebound potential. Market sentiment continues to diverge amidst extreme positions, with whales creating a double kill trap to clean up their chips.
Geopolitical risks are amplifying market volatility. The Trump administration has restarted the trade war with China and imposed counter-tariffs on the EU, compounded by concerns over a nuclear crisis triggered by the escalation of the Russia-Ukraine conflict, injecting uncertainty into risk assets.
Technical indicators show that the mid-cycle correction trend has not yet ended, and the short-term rebound resembles a bearish short-covering trap, with a significant resistance at the $109,000 level.
Market cycle patterns suggest that the period from June to August may continue to exhibit a fluctuating downward washout pattern. One must be wary of whales using news and technical resonance to create false breakouts, achieving chip replacement through repeated harvesting.
Next, I will be scouting some suitable cryptocurrencies. Feel free to express your confusion and helplessness in the comments! Choice is greater than effort!
