Gu Jingci: Bitcoin/Ethereum Trading Strategy with Market Analysis (May 6th)
Yesterday's strategy for shorting Bitcoin/Ethereum above 81000 and 2380 was to continue shorting. Bitcoin's overall trend is strong; after the initial surge, it didn't pull back and showed signs of strengthening. Ethereum, after its initial rise, consolidated and experienced a partial pullback, reaching a low of around 2352, but the downside was limited. The 4-hour chart shows that the price has been range-bound after recent rallies, with bulls and bears locked in a stalemate. Multiple rallies have been followed by long upper shadows, indicating selling pressure and significant resistance, suggesting weakening bullish momentum. Technically, while the DIF and DEA lines are still above the zero line, the distance between them is narrowing, and the MACD histogram is shortening, indicating weakening short-term upward momentum and a risk of a death cross. The current issue is that many people believe Bitcoin's strong rally will lead to a catch-up rise in Ethereum. However, my view is exactly the opposite. Once Bitcoin falls back, Ethereum will likely experience a larger drop. The key resistance levels to watch in the short term are 82,000 and 2,400, while the key support levels are 80,000 and 2,340. A break below these support levels will lead to further declines. Trading suggestions: Short Bitcoin around 81,600 to 82,000, with a target of 78,000 to 79,000; Short Ethereum around 2,380 to 2,400, with a target of 2,250 to 2,300, and further downside targets at 82,500 and 2,430.