【5.27 Crypto Circle Morning Report】Countdown to the end of Red May! Bitcoin is stuck at the 110,000 mark with bulls and bears in a standoff, while Ethereum awaits a breakthrough at a key level!

CN
3 days ago

Tracking real-time hotspots in the cryptocurrency world and seizing the best trading opportunities, today is Tuesday, May 27, 2025, I am Wang Yibo! Good morning, crypto friends! ☀️ Die-hard fans check in 👍 Like to make big money 🍗🍗🌹🌹

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As the calendar pages turn, in just four days, the highly anticipated "Red May" will come to an end. In the cryptocurrency market, discussions about whether "the end of Red May means the end of the bull market" are rampant. However, this viewpoint may be overly one-sided. As Bitcoin successfully broke through the 110,000 mark and continuously refreshed its historical highs, the market unexpectedly encountered a "twist," and the story behind this game of chess is worth savoring.

When Bitcoin's price surged past 110,000, and the market was in jubilation, the unreliable "Trump" suddenly waved the "tariff big stick." This seemingly unprovoked action actually hides a web of interests. From a capital perspective, the unreliable "Trump" and the family projects behind him have long coveted the "big cake" of the cryptocurrency market. The rapid rise in Bitcoin's price made it difficult for them to acquire enough cheap chips. In the capital market, chips represent power; without sufficient low-priced chips, the subsequent profit space will be significantly compressed. Therefore, to maximize profits, the unreliable "Trump" chose to "stir the pot" in this way, attempting to disrupt the market rhythm and gain more time and opportunities for chip collection.

Under the impact of the "tariff big stick," Bitcoin's price did not continue its upward momentum but instead fell into repeated fluctuations around the 110,000 mark. The current market shows a trend of shrinking volume and sideways movement; beneath the surface calm lies fierce accumulation of both bulls and bears, as well as deep repairs of various technical indicators. Shrinking volume indicates a temporary cooling of market trading enthusiasm, with both buyers and sellers cautiously observing the current price level, but this does not signify a decline in market vitality. On the contrary, sideways accumulation often serves as a prelude to a new round of market surges. Looking back at the history of the cryptocurrency market, price trends have always been full of dramatic reversals; the end of Red May may not be the end of the bull market but rather the starting point for a new round of trends. Once the market has accumulated enough momentum and the indicators are repaired, Bitcoin is very likely to break the fluctuation pattern and launch an attack on higher price levels, potentially creating new historical highs.

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Bitcoin staged a "roller coaster" market early this morning, with prices once soaring to around 110,400. This was an excellent opportunity for bulls to capitalize on their momentum, but they unexpectedly encountered strong resistance. After hitting the upper band of the hourly chart, the price quickly came under pressure and fell to 108,800. Even when it touched the lower band of the Bollinger Bands, the trend remained parallel without showing signs of divergence. This stalemate clearly indicates that the forces of bulls and bears are evenly matched, making it difficult to form a clear trend in the short term, and it is likely to maintain an adjustment phase.

From a daily chart perspective, after briefly refreshing its historical high, Bitcoin quickly came under pressure and closed with a bearish candle. Although it subsequently recorded a series of bullish candles for a slight increase, the trading volume has not effectively expanded. In financial markets, trading volume is a core indicator of market momentum; insufficient volume indicates a lack of upward momentum, which also buries hidden dangers for subsequent trends. It is expected that Bitcoin will face downward pressure in the short term. More concerning is that the three consecutive bullish candles have not managed to engulf the previous "spike," indicating the heavy pressure above.

After the four-hour chart's high and subsequent pullback, a strong support area has formed around 106,000; the upper resistance is at the historical high of 112,000. Although the current trend shows signs of a pullback, it has not yet broken the upward trend line. The 106,000 support level has become a critical watershed in the battle between bulls and bears, and its breakdown will directly determine the direction of subsequent trends, which needs to be closely monitored.

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Ethereum also staged a high and then a pullback yesterday, with prices once reaching 2,597, demonstrating the bulls' determination to attack, but quickly faced strong selling pressure at high levels. The upper shadow line formed on the daily chart acts as a warning signal from the market, directly reflecting the heavy selling pressure above the current price level. Whenever the price reaches high levels, selling pressure floods in, suppressing further upward movement by the bulls.

Shifting the perspective to the weekly chart, Ethereum has previously achieved a key breakthrough, which often signals a reshaping of the market structure and lays the foundation for subsequent trends. However, market uptrends are never achieved overnight; short-term corrections and accumulation after a breakthrough are the norm. Currently, Ethereum is in this critical phase, and the market needs time to digest profit-taking and rebuild upward momentum.

The 2,580 resistance level has become the focus of the current market, and its breakout validity will be a core indicator for judging Ethereum's subsequent trends. Once the price successfully stabilizes above 2,580, it not only means that the bulls have successfully broken through the upper resistance but will also greatly boost market confidence. At that time, bullish sentiment will be thoroughly ignited, likely triggering a new round of explosive upward trends, leading Ethereum to open up new upward space.

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If you are feeling lost—don’t understand the technology, don’t know how to read the market, don’t know when to enter, don’t know how to set stop losses, don’t understand take profits, randomly increase positions, get stuck at the bottom, can’t hold onto profits, miss out on trends… these are common problems for retail investors. But don’t worry, I can help you establish the correct trading mindset. A single profitable trade is worth more than a thousand words; finding the right direction is better than repeatedly failing. Instead of frequent operations, it’s better to strike precisely, making each trade more valuable. If you need real-time guidance, you can scan the QR code at the bottom of the article to follow my public account. Market conditions change rapidly, and due to the timeliness of reviews, subsequent trends will be based on real-time layouts. I look forward to moving steadily forward in the market with you.

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