Analysis: If bitcoin fails to stabilize above $106,000, investors are advised to gradually reduce their long positions

PANews reported on May 30 that according to Matrixport analysis, Bitcoin recently soared to $112,000, becoming one of the key drivers of the global market's revaluation of bond yields and the US dollar exchange rate. Despite the denials of exchange rate intervention by many Asian countries, the continued appreciation of Asian currencies has put pressure on regional economies. Bitcoin's rally was initially thought to be related to US tariffs, but is now more driven by macroeconomic concerns in Asia.

The analysis pointed out that the resumption of U.S. corporate buybacks and the expansion of Coinbase's premium show that U.S. investors' bullish sentiment is heating up. Although MicroStrategy bought $4 billion in bitcoin this month, the market believes that the real impetus may come from a new buyer who is secretive and strong. The Bank of Japan's downward revision of economic forecasts and the inflow of funds into the bitcoin market are also worth watching.

In addition, Japan's crypto "shadow stock" Metaplanet has risen sharply in market capitalization, but at an inflated valuation and with a high level of investment risk. The analysis believes that the main gains of bitcoin are concentrated in the Asian trading session, and investors are advised to lock in profits at the current high level at a timely time, and if bitcoin fails to stabilize above $106,000, it is recommended that investors gradually reduce their long positions to control the risk of a potential pullback.

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