May 8th Market Analysis from LBank Derivatives
In recent days, the Bitcoin (BTC) market trend has shown signs of weakness. This is primarily due to the recent popularity of meme coin projects such as Pepe and Aidoge, which have attracted a significant amount of capital and retail investors.
This has ultimately impacted Bitcoin’s market value. Currently, the BTC trend is at the lower edge of a consolidating triangle, and further decline seems imminent. For the time being, it is advised to adopt a wait-and-see approach.
Ethereum (ETH) experienced a decline after attempting to break through the key 2,000-point level last week.
At present, this level presents significant resistance, and the recent price increase is likely due to gas fees. The current trend is at the lower end of a converging range, and if there is no significant rebound, it is recommended to maintain a cautious stance.
Notable Altcoins
Pepe, a recently popular meme project, experienced a surge in trading volume and stagnation after being listed on Binance.
The current market situation is at its tail end, and it is advised to short with low leverage after a considerable rebound.
Regarding the Sui 4-hour chart, the market has broken through the sideways range of the past few days after a recent morning decline. For the future, it is also recommended to short on highs.
In conclusion, the market’s enthusiasm this month has been excessively influenced by meme coins, resulting in a temporary spike. The market will eventually return to a more rational state, and the current overall decline may present short-term opportunities for going long.
For now, it is advised to adopt a wait-and-see approach and await the arrival of the next market cycle.
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Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
