5.22 Morning Market Analysis

Bitcoin rebounded slightly from around 77,100 yesterday, briefly pressured near 78,100 after rising, then oscillated and shook out in the afternoon, quickly stabilized after dropping to the 76,700 level in the evening, with the trend perfectly aligning with our idea of pulling back to buy low. Ethereum moved in sync, rebounding from 2,120 in the morning to 2,157 and encountering resistance, then retreated to test support in the afternoon, and in the evening, after dropping to 2,103, it was met with strong buying interest, currently consolidating around 2,135. The outlook remains to buy low!

From a technical perspective, this pullback is merely the main force inducing a shakeout, a normal correction during an upward trend. The decreasing volume and oscillation indicate the main force is clearing out floating positions and accumulating at low levels, not a sign of weakening bullish momentum. The market’s lows are steadily rising, support levels are continuously strengthening, the bullish structure is intact, and the short-term oscillation is just a way to buy time and gather strength for further upward movement, which has ample room to grow.

In terms of trading strategy, stick to the idea of buying low and avoid being misled by short-term pullbacks. Re-enter long positions on Bitcoin during the retracement to the 77,000-77,500 range, targeting around 79,000-80,000.