May 31st Market Analysis from LBank Derivatives
Bitcoin (BTC) struggled to maintain its position above $28,000. Despite making a brief rally, the cryptocurrency experienced a pullback, indicating a continued downtrend on the 4-hour (4h) chart.
Consequently, it is advisable for traders to focus on short-term positions at this time. Until there’s a significant surge in trading volume that could possibly disrupt the overall downward trend, the prudent strategy would be to buy during lows and sell during highs to secure profits.
Ethereum (ETH), on the other hand, has mirrored Bitcoin’s performance but displayed more stability. Like Bitcoin, Ethereum has also been suppressed by the descending trendline on the 4-hour chart and experienced a slight correction early today.
Nonetheless, traders should take advantage of the dip as this short-term rebound is expected to continue. Ensure to lock in profits promptly to mitigate risks.
Notable Altcoins
Turning our attention to OP, the 4-hour chart shows that the current price has reached a previous low. The market is being pressured by the deleveraging plate, which is having a bearish effect.
The long-term trend might continue to be bearish with a short-term oversold bounce. Traders should consider shorting after the rebound ends. As of now, there could be a further rebound.
Finally, Lina’s 4-hour chart indicates it’s one of the coins with substantial recent gains. After a brief period of consolidation near its previous high yesterday, Lina has successfully broken through to new highs. It’s expected that the coin will continue to rise after a brief correction.
Given that Lina has been a recent hot topic due to its primary bull wave, traders should consider short positions after it corrects to just above 0.02.
In summary, each cryptocurrency holds unique prospects and challenges for traders. They should take note of these trends, be prepared to adjust their strategies accordingly, and most importantly, remain vigilant in monitoring market changes.
It’s crucial to have a risk management strategy in place, ensuring that profits are secured and losses minimized.
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Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
