May 7 | BTCÐ Market Recap from Yesterday

Market Recap from Yesterday

International Situation Background
Yesterday, the global peripheral environment was relatively favorable, with a phased easing of Middle East tensions, weak US employment data, rising market expectations for rate cuts, and US stocks rising in tandem, providing emotional support for the crypto market.
However, unexpected news of institutions suspending Bitcoin accumulation was bearish, suppressing bullish confidence, causing the market to rally but lack strength, and then oscillate and fall back in the late session.

Bitcoin BTC
Yesterday, BTC continued its inertia rally, testing the high of 82,800, but pulled back due to negative news, closing around 81,000, showing a typical rise and fall pattern.
Looking at the 1-hour K-line indicators: Bollinger Bands are narrowing and weakening, the price broke below the middle band support; MACD red bars rapidly shrank and turned downward, indicating a clear decline in bullish momentum; RSI and KDJ both fell from high levels, increasing selling pressure at high levels, and the bullish upward structure is showing its first signs of loosening.

Ethereum ETH
ETH moved in sync with BTC throughout the session, surging to 2,423 and then quickly falling back under pressure, closing at 2,328, with a significantly larger decline than BTC.
Technical indicators also weakened: the price effectively broke below the Bollinger middle band, MACD formed a death cross turning green and downward, bearish momentum was released, selling volume increased, and support below was insufficient, shifting from a strong rebound pattern to a weak correction rhythm.

Today’s Market Analysis

BTC Core Logic
The long-term bullish foundation of BTC has not been completely destroyed, but in the short term, it has entered a correction confirmation phase, which is not a healthy shakeout.
The key support level for short-term strength or weakness is around 80,500. Holding this level, the market can continue high-level oscillation and accumulate strength, with a second surge possible; strong support below is at 80,000, and a break below could extend the correction, targeting the 79,000-79,500 range.
Immediate resistance levels are near 81,500 and the previous high of 82,800.

ETH Core Logic
ETH shows a clear short-term weakness, moving entirely in sync with the market, with greater correction pressure on its own.
The key support below is 2,300; only after stabilizing can it follow the market’s rebound. Resistance levels are at 2,360 and 2,400.
If volume increases and breaks below 2,300 support, the weakness will continue, directly targeting the 2,250-2,200 range.
In the short term, this is purely technical correction without signs of reversal or strength.

Summary
Current macro market favorable factors offset technical weakness, with increased bullish and bearish battles.
Trading strategy should shift from trend-following long positions to cautious oscillation.
Today, focus only on support levels for stable low-buy opportunities; avoid blindly bottom-fishing at low levels.
At high levels, if facing resistance and stagnation, consider small short positions.
Strictly control position sizes, set proper stop-losses, avoid against-the-trend holding, do not over-leverage, and prioritize prudent risk management.