5.18 Morning Market Analysis

The current BTC market is overall in a weak state, grinding through a bottoming and repair phase. While short-term bearish pressure still lingers, the downside momentum has already been exhausted. The market has entered a bottom-building and energy-accumulating stage, and opportunities for a long setup are gradually becoming clearer.

The MACD two lines are running below the zero axis. The bearish atmosphere has not completely faded, but the bearish volume histogram bars are continuing to shrink and diminish, with selling pressure steadily weakening. The bearish downward force is essentially used up. Bullish counter-attack momentum is being continuously accumulated at the bottom, and a potential oversold rebound could happen at any time in the short term.

The Bollinger Bands’ bands are contracting and flattening, indicating reduced market volatility and a clear consolidation-and-cleansing pattern. The coin price remains under pressure below the middle band. There is resistance to near-term upside, while the lower Bollinger Band forms a strong support line, reinforcing the bottom range.

For operations, adhere to a low-buy approach throughout. Aggressive traders may consider placing a small long at the current price. More cautious traders should wait for the 78,000-77,400 support zone to build long positions in batches. The first priority target above is 79,000-79,600. After a volume-expansion breakout, follow through toward the 80,000 level, then further look to 81,500.