May Market Summary + My Trade Share

As we enter May, the market is giving mixed signals. As of May 2, $BTC is hovering around 78k and the 79k-80k zone is acting as strong resistance. The rally is largely driven by futures leverage; spot buying is weak. That’s why the “false fire” risk is high; if it gets rejected from resistance, 77.5k-76.8k is targeted.
Macro Side: The Fed kept rates unchanged, but the hawk-dove split within has widened. As rate cut expectations got pushed back, the dollar strengthened and liquidity tightened. Crypto volatility could stay high in the short term.
Key News:
• Gate.io Proof of Reserves Report: As of May 8, 2025, total reserves are $10.865B with a reserve ratio of 128.57%. BTC reserve ratio is 137.69%, ETH 121.36%, USDT 102.63%. The platform uses Merkle Tree + zero-knowledge to verify reserves. • ETF Options Limit: OCC and CBOE raised the spot Bitcoin ETF options position limit from 25,000 to 100,000 contracts. It covers 11 ETFs, and a single institution will be able to carry a position size of ∼63,000 BTC. This isn’t a price signal; it’s a “market capacity” update showing institutional infrastructure is maturing. • US Strategic BTC Reserve: Trump’s crypto advisor Patrick Witt said “big announcement in the next few weeks.” The US currently holds ∼328,000 BTC = $25.1B, all sourced from seizures. With the executive order signed in March 2025, state BTC cannot be sold and became a permanent reserve asset.
Trade Idea: $ETH
On the monthly chart, ETH is testing the rising trend support going back to 2022. There’s a double top at 4,800, but the real story is the “Support of Truth” trendline at $2,301. In the April 30 analysis, ETH was around 2,230, EMA60 was broken, MACD is releasing downside momentum. Short-term relief bounces could be short opportunities.
My own plan:
• Direction: If rejection comes from the 2,280-2,308 resistance zone, attempt a short • Stop: 4H close above 2,350 • Target: 2,150 – 2,080 Keeping leverage low, staying spot-heavy. Unless BTC closes above 79k, aggressive longs in alts are risky.
Gate Square May Event: Post, discuss, win a red envelope every day. 100% reward guaranteed for new users. For the first 100, there’s a Gate X RedBull building block competition set and sports set. To join, just post your first May submission on Square.
May’s theme is clear: “Liquidity is weak, news flow is strong.” Stick to the tidal trading system, no panic in short-term noise. For long-term positions, the second half of the year could be a window of opportunity.
#GateSquareMayTradingShare
#Gate广场五月交易分享
Note: This post is not financial advice. Always do your own research (DYOR).
$ETH ‌$BTC ‌