Bitcoin market surprises, but the bottom line remains bearish

Yesterday afternoon, the Bitcoin market saw a spectacular bullish leap to the top, with the price of Bitcoin breaking through the ceiling resistance layer in one fell swoop. This crazy behavior is undoubtedly heartbreaking for many people, and on some exchange charts, the price has been pushed up by nearly $20 in one fell swoop. The recent price action has made most traders (literally) do exactly the opposite of what they did before this disastrous upward trend. The following analysis may bring some relief to your heart.

Bitcoin Price Analysis

OKCoin 1-hour chart analysis (23:14, September 22, Beijing time)

Today's move was unexpected - there was no sign of it on the charts - and it left a clear sign of continued decline, leaving defenseless retail investors like fish on the chopping block. This morning's analysis [on xbt.social] showed the potential for an upward attack, but even so, it was unable to find the cause of the chaotic upward impulse waves in the charts provided by these bitcoin exchanges.

Some people accuse this of malicious market manipulation, but this does not help our analysis or trading. Traders must deal with all possible factors in the market. Just today's xbt.social dynamic stop loss setting warning can minimize your losses. Otherwise, forced liquidation will be the inevitable choice for most players who use margin trading. Some short-selling players who opened positions at the last high point in the xbt.social trading suggestion finally survived.

What to do with these open short orders? Keep short, here are the reasons we give:
The price has been around the red golden section line. Not shown, the last time the price touched this level was the correction high in late July last year. The fan golden section line originated from the previous high in mid-July.

Note that the upward impulse wave does not have a base building phase to initiate the charge. The entire structure is in a downward slope shape that continues to make lower lows. This means that the upward wave is still not the beginning of a new bull market, but a correction, and the downward trend is expected to resume soon!

The best option for any player who does not wish to short is to stay away from the market at this time. On the exchanges that have seen the strongest gains today, namely OKCoin, BTC China and Huobi, let’s wait for prices to fall below their 1-hour 200-period moving averages, which, if it happens, would mean a return to a downtrend and a suitable time to short.

Now is no time to think about what you don't have. Think about what you can do. --Ernest Hemingway (The Old Man and the Sea)

Summarize

Today is an unfortunate result, but it has a common feature, which is also the manifestation of the same feature that caused the sharp rise in the price of Bitcoin. Traders have no choice but to bear these losses. It is also a reminder that at any time, we who speculate should protect our bottoms. Until the opposite market characteristics become obvious, the downward trend remains, both technically and fundamentally.

Bitfinex order depth chart and trading volume display: