Bitcoin breaks through two barriers in a row, and the market structure changes quietly
Recently, the Bitcoin market has been surging, breaking through two important resistance levels in one go. This feat not only stunned investors, but also foreshadowed the quiet change of the market structure.
On May 2, the Bitcoin market seemed to stage a false illusion of a "big drop". This wave of operations cleverly washed out those spot chips that were bottomed out near $56,000, thus creating favorable conditions for the funds behind to collect low-priced chips. Sure enough, this strategy was perfectly presented on the evening of May 4, and Bitcoin rose to a high of $64,545 in one fell swoop, which excited the market.
However, this is only the first step in the adjustment of the Bitcoin market. According to market analysis, the second purpose of this pull-up is to try to detonate the short orders of Bitcoin contracts. However, from the current situation, the magnitude of this pull-up has not yet reached the critical point that is enough to cause the short orders to explode, and the market seems to be waiting for greater actions.
It is worth noting that during the rise that began at 20:00 on the evening of May 3, there must have been a large number of long orders for Bitcoin contracts in the market. The intervention of these long orders undoubtedly increased the difficulty of Bitcoin's rise. At the same time, the short orders in the market are also quietly waiting for the opportunity, ready to show their prowess during the decline.
Faced with such a market pattern, investors may feel confused. But there is a strategy that may be a way out for the market - that is, up and down pins, long and short double explosions! In this way, the Bitcoin market may be able to break the current deadlock and bring more opportunities to investors.
Judging from today's market trend, Bitcoin has fluctuated sideways between $62,000 and $64,000, and successfully stood firm at the $62,000 mark. This performance undoubtedly laid the foundation for further market gains. Once Bitcoin can stand firm in this position, it will be expected to challenge the resistance point of $65,000 again.
At the same time, Ethereum also showed strong momentum. After breaking through two resistance levels simultaneously with Bitcoin, Ethereum today fluctuated sideways in the range of $3,000 to $3,150 and successfully stood firm at the $3,000 mark. It is worth mentioning that Ethereum has fallen below the 120-day moving average three times, but it has rebounded quickly each time, which shows that there is strong capital supporting this market from below.
This round of rebound can be seen as a staged rebound in the market. However, to truly determine the future trend of the market, it depends on whether Bitcoin can successfully break through and stand firm at the resistance point of $65,000, and whether Ethereum can successfully break through and stand firm at the resistance point of $3,385. If both can successfully break through and stand firm at these key points, the market will be expected to return to the upward channel; otherwise, the market may face the risk of a correction.
In such a market full of variables, investors need to keep a cool head and keen observation. Only in this way can we seize opportunities in market fluctuations and realize the appreciation of wealth.
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