May 25th Market Analysis: BTC Deep V Recovers All Losses, Is the Real Bottom Signal Here?
The crypto market has been dominated by bears, with continuous declines for over 12 days. This drop is different from the past, with no rebounds in between—just a series of dips and consolidation, cycling through this pattern for over half a month. Multiple bullish cycles have all ended in consolidation. The daily chart shows signs of bottoming out; as of May 17, we entered the bottoming cycle, and the decline post-bottom has intensified. Until yesterday, both BTC and ETH broke through their critical support levels (BTC at 75000, crashing nearly 1000 points, and ETH at 2050, breaking 43 points). The technical analysis was completely wrecked, but last night brought some good news; the classic narrative of US-Iran negotiations might lead to an agreement.
Coupled with the existing bullish resonance logic, this news became the catalyst for a rebound. All the daytime losses were recovered. The pressure points were all broken through, leading to a massive liquidation of long positions: the daily liquidation scale was approximately $229-250 million, second only to BTC. By another metric, this week's total liquidation reached as high as $439 million. The market is showing clear signs of liquidity hunting, with prices likely to sweep through concentrated long areas before breaking downwards past 2179. Major CEXs could see short liquidations totaling up to $1.056 billion, potentially triggering a short squeeze. The medium to long-term downtrend remains unchanged. Recent trades haven't been ideal; consult btc0796 for market discussions.
Trading Recommendations:
BTC 75700-76200 go long, target 77200 - 78200, stop-loss at 75200.
ETH 2040-2080 go long, target 2160 - 2240, stop-loss at 2000.
The views, conclusions, and recommendations in this article are for reference only and do not constitute investment advice. The market carries risks; invest with caution.
$BTC
$ETH
The crypto market has been dominated by bears, with continuous declines for over 12 days. This drop is different from the past, with no rebounds in between—just a series of dips and consolidation, cycling through this pattern for over half a month. Multiple bullish cycles have all ended in consolidation. The daily chart shows signs of bottoming out; as of May 17, we entered the bottoming cycle, and the decline post-bottom has intensified. Until yesterday, both BTC and ETH broke through their critical support levels (BTC at 75000, crashing nearly 1000 points, and ETH at 2050, breaking 43 points). The technical analysis was completely wrecked, but last night brought some good news; the classic narrative of US-Iran negotiations might lead to an agreement.
Coupled with the existing bullish resonance logic, this news became the catalyst for a rebound. All the daytime losses were recovered. The pressure points were all broken through, leading to a massive liquidation of long positions: the daily liquidation scale was approximately $229-250 million, second only to BTC. By another metric, this week's total liquidation reached as high as $439 million. The market is showing clear signs of liquidity hunting, with prices likely to sweep through concentrated long areas before breaking downwards past 2179. Major CEXs could see short liquidations totaling up to $1.056 billion, potentially triggering a short squeeze. The medium to long-term downtrend remains unchanged. Recent trades haven't been ideal; consult btc0796 for market discussions.
Trading Recommendations:
BTC 75700-76200 go long, target 77200 - 78200, stop-loss at 75200.
ETH 2040-2080 go long, target 2160 - 2240, stop-loss at 2000.
The views, conclusions, and recommendations in this article are for reference only and do not constitute investment advice. The market carries risks; invest with caution.
$BTC
$ETH