【June 5 Cryptocurrency Morning Report】: Bitcoin continues to consolidate in the red, Ethereum's channel has broken down, how to seize opportunities in a volatile market?

CN
2 days ago

Tracking real-time hotspots in the cryptocurrency market and seizing the best trading opportunities, today is Thursday, June 5, 2025, I am Wang Yibo! Good morning, crypto friends! ☀️ Die-hard fans check in 👍 Like to make big money 🍗🍗🌹🌹

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First, let's take a look at the dynamics of the U.S. stock market. On Wednesday, the U.S. stock market closed with the Dow Jones initially down 0.2%, the S&P 500 index slightly up, and the Nasdaq Composite index up 0.32%. Among the components, Tesla (TSLA.O) fell 3.5%, while Nvidia (NVDA.O) rose 0.5%. The Nasdaq China Golden Dragon Index closed up 2.04%, with Alibaba (BABA.N) rising 3.8%. Regarding interest rate expectations, according to CME's "FedWatch," the probability of the Federal Reserve keeping interest rates unchanged in June is 95.6%, while the probability of a 25 basis point rate cut is 4.4%; the probability of maintaining rates in July is 69.9%, with a cumulative probability of a 25 basis point cut at 28.9% and a cumulative 50 basis point cut at 1.2%. This series of data reflects the dynamics of the capital market under the current macroeconomic environment, which will also have a certain degree of indirect impact on the cryptocurrency market, as funds flow between different markets, and the direction of interest rates will affect the allocation preferences of capital.

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Now focusing on the core cryptocurrency Bitcoin, last night's market showed a relatively strong downward trend. The price rapidly dropped from a high of 105,555 to a low of 104,360 before stopping the decline. The current market situation continues to alternate between bullish and bearish, caught in a tug-of-war oscillation pattern. Analyzing the daily chart, we can clearly see a series of bearish candles, with multiple doji formations and small body candles, indicating a regular washout trend. Last night, although Bitcoin attempted to rise, it quickly fell back at midnight, ultimately closing lower. As for the current market, a one-sided trend has not yet formed, lacking sufficient momentum and continuity, which greatly increases the difficulty for investors to grasp the market rhythm. Switching to the four-hour chart, the pattern of dropping and recovering is repeatedly played out, with the lows stabilizing and slightly moving up in the oscillation, showing some support; however, the resistance at the highs remains solid, making it difficult to find continuity in the short-term space. Based on this, the morning's operational strategy still revolves around the oscillation idea, suggesting a focus on shorting during rebounds. After all, in the current oscillating market lacking a clear direction, chasing highs and cutting losses is a very dangerous operation. When the price of Bitcoin rebounds and approaches the upper resistance level, it is a good opportunity to set up short positions. However, due to the frequent market fluctuations and the tug-of-war between bulls and bears, setting reasonable stop-loss and take-profit levels is crucial. Stop-loss can help us control losses in case the market goes against our expectations, while take-profit allows us to secure profits when we achieve a certain gain.

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Ethereum's market last night was similar. The price retreated after reaching a high of 2,682, with the lowest price in the early morning dropping to around 2,601. From the four-hour K-line chart, the market trend shows a clear oscillation pattern evolution characteristic. Previously, the price fluctuated regularly within the rising channel formed by the middle and upper bands, with technical pullbacks occurring each time it touched the upper band, while effective support was found when it dropped near the middle band. However, this orderly channel operation is gradually being broken, and the market is starting to engage in a tug-of-war around the middle band of the Bollinger Bands. At this point, closely monitoring the gains and losses of this key support and resistance level is crucial. If the price can effectively break through the middle band resistance and stabilize, it may indicate that the bullish forces are gaining the upper hand, potentially opening a new round of upward movement; conversely, if the middle band support is broken, the bears may further exert pressure, driving the price down to seek new support. At this critical juncture of the tug-of-war, investors need to operate cautiously, adjusting their investment strategies reasonably based on market news and technical indicators to cope with the uncertainty of Ethereum's market.

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If you are feeling lost—don’t understand the technology, can’t read the 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 by bottom fishing, can’t hold onto profits, miss out on 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 facing defeat. Instead of frequent operations, it’s better to strike accurately, 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 progressing steadily with you in the market.

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