May 22nd Market Analysis from LBank Derivatives
BTC
Starting with Bitcoin (BTC), the daily market performance has been oscillating downwards, circling around the trend line. Its current price has reached near the 120-day moving average. In the short term, there is a visible trend for further downturns.
Trading advice suggests that potential buyers should consider entering the market when the price retreats to the 120-day moving average, establishing their base position at a relatively safe entry point.
Similarly, Ethereum (ETH) reflects an overall trend similar to that of Bitcoin, with a short-term trend indicating potential for further adjustments downwards. Its price is also nearing the 120-day moving average.
Again, the suggested trading strategy is to consider establishing a base position when the price drops close to the 120-day moving average. At present, it would be prudent to primarily observe the market.
Notable Altcoins
Moving onto Pepe, the daily chart shows a sharp increase to near its previous high during the early hours of yesterday. However, all the gains were eventually offset within the day, indicating immense selling pressure.
The future market outlook remains bearish. Traders are advised to continue short-selling at higher levels and to primarily open short positions during a bullish rebound.
Lastly, Conflux (CFX) is nearing the end of its market trend. With the impending Hong Kong policies, the market trend of Hong Kong-themed cryptocurrencies is also coming to a “fish tail” end, meaning there’s a high probability of continued oscillation downwards.
Trading advice suggests that, assuming the market will not experience significant surges in the future, traders should primarily consider short-selling at higher levels.
In conclusion, the market is currently characterized by a generally bearish outlook across these cryptocurrencies, suggesting caution for traders and investors.
The strategy of establishing base positions at lower levels and short-selling at higher levels seems to be the primary approach for the current market environment.
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Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
