Thursday Summary & 5.22 Friday Early Morning Bitcoin and Ethereum Market Analysis and Trading Suggestions

The essence of trading is not chasing the highs or selling at the lows, but making decisive moves at the right moments. Looking back at Thursday all day, there was a wave of initial rally followed by a correction. Bitcoin continued its strong upward trend from the previous day early in the morning, reaching a high of around 78,180 in the afternoon, then gradually pulling back, with the lowest point at around 76,696 in the evening, finally closing around 77,300. Overall, after a continuous rebound, the bullish momentum has weakened, and profit-taking demand caused a pullback during the session, but the rebound structure remains intact, and support levels below are still effective.
Thursday’s real trading setup mainly focused on buying on dips, while also catching a retracement short position. Bitcoin gained a total of 2,712 points in space throughout the day, and Ethereum gained a total of 89 points.

The current market remains in a healthy bullish recovery state, with overall momentum quite stable. After yesterday’s slight pullback from the high of 78,180, Bitcoin’s support at lower levels is solid, with no volume during the pullback and strong support, indicating short-term bullish momentum is still ongoing. After encountering resistance and pulling back from the high of 78,180, there was no further panic selling; instead, it slowly recovered along the four-hour midline, a typical strong correction. The hourly Bollinger Bands have shifted from diverging to flattening, with the candlesticks retracing to near the middle band and finding support, indicating effective support at the middle line. Resistance above is around 77,600-77,800, and as long as it does not fall below the double bottom support at 76,000, further downside space is limited. Ethereum’s resistance above is at 2,150-2,160, with support at 2,120-2,130, and limited retracement space. Expect stabilization during early morning oscillations, mainly buying on dips.
BTC: Buy on dips in the 77,000-77,500 range, target 78,500, break above targets 79,000
ETH: Buy on dips in the 2,100-2,130 range, target 2,180, break above targets 2,230