From the LBank blog.
The recent volatility in the cryptocurrency market continues to exhibit small-scale fluctuations, with Bitcoin (BTC) trading around a crucial level of $27,000.
The market is currently poised on the edge of a significant decision point, prompting a prevailing sentiment of caution. The strategy for BTC remains ‘wait-and-see’, with a recommendation to consider buying in the event of a drop below $26,000.
However, it is important to note that the current setup doesn’t provide a high certainty for opening new positions. The four-hour (4H) BTC chart exhibits a rectangular consolidation pattern at the lower edge, suggesting potential buying opportunities at previous support levels.
Ethereum (ETH) mirrors a similar trend, demonstrating weak fluctuations over the past few days. The current market situation is extremely likely to result in a decisive directional choice soon.
The recommended strategy for ETH is to wait for a pullback to previous support levels before considering going long, while maintaining a watchful stance at the current level.
Pepe Coin (PEPE), following a violent bounce-back on the day Elon Musk tweeted about it, has been in a continuous bearish trend.
The recommended strategy is to consider going short only after a substantial bullish candle forms on the 4H chart. It is advised to maintain a light position to guard against any news-driven spikes.
OP Coin (OP) has seen a short-term oversold bounce after a significant volume-led drop, breaking out of its recent range. However, the coin is still in a downtrend.
The suggested strategy is to gradually dollar-cost-average (DCA) short positions after a bounce, preferably during a retracement period.
Both BTC and ETH are in a phase of narrow range oscillation near relatively high levels, while previous hot coins are experiencing an oversold bounce.
The current strategy suggests waiting for a BTC retracement before buying, while considering shorting mainstream and hot coins after a bounce. Litecoin (LTC), on the brink of halving, has already achieved the anticipated 10% increase. The future strategy involves waiting for a pullback before maintaining a bullish stance.
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Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
This article came directly from the LBank blog, found on https://lbank-exchange.medium.com/may-17th-market-analysis-from-lbank-derivatives-6d4632b93160?source=rss-87c24ae35186——2