May 15th Market Analysis from LBank Derivatives
BTC
Bitcoin (BTC) experienced a significant decline last week, with its price reaching a low of $25,800 early Saturday morning. However, the market quickly rebounded, and the current price is now above $27,000.
This pullback is still within the expected range following the recent bullish trend in the cryptocurrency. For this week, we expect a continued recovery, with the recommendation being to take a cautious approach to buying on daily dips and timely profit-taking near the trendline.
ETH
Ethereum (ETH) is relatively weaker compared to Bitcoin, with the daily trendline resistance just ahead. For the price to move higher, we need to see a strong volume break above the trendline resistance.
The recommendation for Ethereum is to wait for a high-volume break and subsequent pullback before considering a long position. For now, it’s best to remain on the sidelines.
Notable Altcoins
PEPE
Pepe (PEPE) witnessed a drastic rebound after Friday’s extreme overselling, with its price soaring by 80% following a tweet from Elon Musk on Saturday. It appears that the negative news at the bottom was aimed at accelerating the decline and clearing the market.
However, considering the historical performance of Dogecoin (DOGE) and Shiba Inu (SHIB) following similar news, it is likely that the market will continue to experience downward fluctuations. It is advised to short sell at higher levels with a small position.
LTC
Litecoin (LTC) has undergone a significant downward adjustment over the past two weeks. With most short-term speculators exiting the market, the upward trendline remains valid.
The current price is near the lower boundary of the previous resistance box, and we expect the price to rise this week.
The selling pressure has decreased, and the weekend’s market closing showed an upward movement with a long lower shadow on the weekly candlestick. The recommendation is to buy on dips, anticipating a 10% or more rebound at the beginning of the week.
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.
