5.17 Crypto Circle Morning Report: U.S. Stocks Rise for Five Consecutive Days VS Crypto Market Experiences Downward Fluctuations, Intensifying Long and Short Battle for Bitcoin and Ethereum

CN
7 hours ago

Good morning, crypto friends! Today is Saturday, May 17, 2025, I am Wang Yibo! Thank you all for waiting on time, loyal fans remember to check in, like to boost good luck, may today’s trading be prosperous! 🔥

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【1. U.S. Stock Market and Crypto Market: A Tale of Two Cities, Trend Divergence Intensifies】

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This Friday, the U.S. stock market continued its strong upward trend, with all three major indices closing in the green, marking a successful end to the week. The Dow Jones Industrial Average rose by 0.78%, the S&P 500 increased by 0.70%, achieving five consecutive days of gains, and the Nasdaq Composite Index also rose by 0.52%. In terms of individual stock performance, there were frequent hot topics: Virgin Galactic (SPCE.N) saw its stock price soar by 43.24% due to new developments in the commercial spaceflight sector; leading new energy company Tesla (TSLA.O) rose by 2.09%; chip giant Nvidia (NVDA.O) saw a slight increase of 0.42%. In the Chinese concept stock sector, the Nasdaq Golden Dragon China Index rose by 0.52%, with Bilibili (BILI.O) surging by 6.71%, but Alibaba (BABA.N) fell against the trend by 0.34%, showing clear divergence within the sector.

The core driving force behind this round of U.S. stock market gains comes from the dual benefits of the macro environment and corporate fundamentals. The international trade tensions have eased temporarily, recent inflation data has released positive signals, and the expectations for Federal Reserve interest rate hikes have significantly cooled, injecting a strong boost into the market; at the same time, the impressive performance during the corporate earnings season has further solidified the foundation for stock price increases.

In stark contrast, the crypto market continues to show a downward trend, completely detached from the upward momentum of the U.S. stock market. Even in the context of a global rally in risk assets, the cryptocurrency market remains sluggish, with investor confidence shaken and market sentiment scattered. Funds that previously entered the market chasing prices are now trapped in losses due to price corrections. However, crises often breed opportunities, and it is recommended to focus on established public chains (such as Ethereum and Polkadot), the payment sector (on-chain payment protocol projects), the AI sector (innovative projects combining blockchain and AI), and varieties with expectations of spot ETF approvals, as these areas may break through first due to technological innovations and policy expectations.

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【2. Bitcoin: After the Roller Coaster Market, $105,800 Becomes the Lifeline for Bulls and Bears】

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Yesterday, Bitcoin staged a thrilling "roller coaster" market. In the morning session, bullish forces surged, pushing the price quickly up to $104,395, but heavy selling pressure above caused the price to fall back; in the afternoon, Bitcoin dipped to a low of $103,070 before rebounding; in the evening, the price again tested $104,500, then fell into a range of fluctuations.

From a technical analysis perspective, the four-hour chart is crucial. After the price surge, it faced clear resistance, and bullish momentum weakened, making it difficult to push prices further up. The RSI indicator has shown a clear downward turn, indicating that the market's short-term overbought condition is being corrected, and there is a risk of trend reversal. Currently, Bitcoin is facing resistance at the $105,800 level, while the $100,000 round number forms strong support below. Over the weekend, focus on the breakthrough of the $105,800 resistance level; if it can break through effectively with increased trading volume, Bitcoin is expected to challenge $110,000; if it is blocked and falls below $100,000, the market may enter a deep adjustment phase, and investors are advised to strictly control their positions and adjust strategies flexibly.

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【3. Ethereum: Slow Bull Pattern Continues, Pullbacks May Be a Good Entry Opportunity】

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Ethereum showed a "stair-step upward" trend during the day, gradually rising from a low of $2,510 in the morning to a high of $2,652, then faced downward pressure, testing a low of $2,528 during the session. From a technical perspective, Ethereum's performance is stable, with prices rising gradually in small bullish candles, forming an "upward channel" pattern, indicating rational control by bulls. On the daily chart, the MACD dual lines continue to diverge above the zero axis; although the red bars have shortened, the bullish dominance remains unchanged; the KDJ indicator is flattening in the overbought area, suggesting short-term fluctuations may occur, but it does not affect the mid-term upward trend; the middle band of the Bollinger Bands continues to rise, forming dynamic support, with prices consistently operating near the upper band, maintaining a strong overall pattern.

Although Ethereum's current upward momentum has slowed, this "slow rise" mode is actually more sustainable, and there is still room for further increases. In terms of operational strategy, it is recommended to follow the trend and position during dips. When the price stabilizes in the support range of $2,580 - $2,600 during a pullback, it can be seen as an excellent entry opportunity, continuing to maintain a bullish outlook.

I will continue to track real-time hotspots in the crypto space to help everyone seize the best trading opportunities. The market changes rapidly, remember to stay updated and adjust trading strategies in a timely manner!

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If you are feeling lost—don’t understand technology, don’t know how to read charts, don’t know when to enter the market, don’t know how to set stop losses, don’t understand take profits, randomly increase positions, get stuck while trying to catch the bottom, can’t hold onto profits, miss market opportunities… 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 a thousand words, and finding the right direction is better than repeatedly losing. 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. The market changes 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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