Bitcoin Price: A Marginal New Low

Bitcoin price has fallen from its previous consolidation zone above $230. The moving low entered a divergence trend on the 1-hour chart and should now correct from current levels before resuming the downtrend.

Bitcoin Price Analysis

Bitfinex 1-hour chart analysis (22:37, September 16, Beijing time)

 
Previously, xbt.social did such a technical analysis and raised the target price from $207 to over $210.

We retain the operation suggestion, which is the previously discussed profit margin of $180 and $150. After completing the operation of this profit target, you should keep 50% of the position. Of course, you can also use 100% of the position to do short selling and then buy back in. Any gap is a possible event, but it is not guaranteed.

The above discussion is about an offensive style. Considering the defense of our funds and positions, we should note that today's decline has formed a double regular divergence of the RSI indicator and the MACD indicator on the 1-hour chart. This indicator allows market operators to continue buying after profit taking, causing the price to be pulled back to our entry area or close to the 200-period moving average position (red). However, since the price is below the current 100-period moving average range of the daily chart and below the 200-period moving average of the weekly chart, we should stick to our position.

If you still have some money left in your current position - hold on - you can use that money to execute your strategy if prices push higher. Now, just add to your current position once prices drop below this week's previous lows.

One final word of advice for defensive strategies: consider moving your stops lower so that you close your position when the price approaches your buy level, and calculate the costs to determine your breakeven level. We may be forced to admit that there will be additional downside, but volatility is increasing and anything can happen. Protect what you have.

I'm always more worried about losing money than about making money. Don't focus on making money, focus on protecting what you have. --Paul Tudor Jones

Summarize

In response to the recent price decline, market participants have expressed their concerns. They generally believe that the price may have limited room to fall, perhaps just hovering at the current level, or, at most, falling to the floor support line of $220. This may be true, but we have not seen strong signs of reversal in the chart indicators. Despite the current high demand for correction, the price looks like it will continue to fall to at least $220. The target point given by the xbt.social target system is between $220 and $210.

Bitfinex order depth chart and trading volume display: