May 12th Market Analysis from LBank Derivatives
Bitcoin’s daily chart has shown a continuous decline for several days, approaching the bottom of its previous consolidation range. This indicates a possible continuation of the downtrend.
Based on the current market cycle, it is recommended that investors attempt to buy in when the price reaches the daily uptrend line.
Should the price break below the range’s lower limit, a bounce demand at around $26,500 is expected. A safer approach would be to try buying near the $25,000 level.
Ethereum’s daily chart shows a relatively weaker performance compared to Bitcoin. The current price has reached the starting point of the previous market breakout.
After this downward probe, a bounce due to oversold conditions is expected. It is advised to follow the daily uptrend line and buy when the price reaches the line for a more conservative approach.
Notable Altcoins
OP, a previous hot project, has been in a continuous downtrend in its daily chart. The price has now reached the lower limit of the downward channel and has broken through the previous support level.
It is recommended to consider shorting this coin during future rebounds. A reasonable entry price for a dollar-cost averaging strategy would be below 2 units.
PEPE’s 4-hour chart shows a significant decline, with the price dropping by 75% since its listing on Binance. The price has now returned to the level it traded at when it was first listed on OKEx.
Most investors have experienced severe losses, and recent negative news has accelerated the decline. At this point, a small position in PEPE could be taken for a bounce play, with the focus on quick entry and exit, and timely profit-taking.
As the market continues to evolve, it is crucial for investors to stay informed about the latest trends and adjust their strategies accordingly. Bitcoin and Ethereum are experiencing downtrends, with ETH showing a relatively weaker performance.
PEPE may offer a quick bounce play, while OP remains in a downward trajectory, suggesting potential shorting opportunities during future rebounds. Investors should remain cautious and adapt their strategies based on the changing market conditions.
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Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
