Bitcoin's price trend shows a bad sign

     The price of Bitcoin is showing a bad sign. The possibility of a strong decline from the current chart position is high, but thankfully, it is mitigated by the support below. Will the support line hold? We are not sure, and for now we are focusing on a short-term position, regardless of where the bottom will be.

Bitcoin Price Analysis

     So far, the price action is in line with the report expectations. The price is consolidating above $ 230 ; the MACD indicator (bottom) is testing its zero line, the Stochastics (top) are moving away from their upper end, and the RSI indicator is declining after making an upward reverse divergence.

     The operation suggestion given by xbt.social is to establish a short position at this position. When the price reaches the blue 50-period moving average or the MACD reaches the zero line, the market will open at least part of the position.

     It is not possible to foresee whether the market will pull the trading price to the 200-period moving average, or whether the price will continue to move downward. Our best option now is to prepare for either outcome. One way is to keep at least half of the total position available, and if the price reaches the 200-period moving average, the price should not continue to move higher, and then use the existing funds to decisively enter at a position below yesterday's low. OKCoin traders can set a trigger to complete this operation plan at a position slightly below yesterday's low.

     Either way, if the price moves to the 200-period moving average, we must avoid liquidation. As indicated in the resources of leverage 100 and leverage 300 in the xbt.social chart, keep risk awareness and keep the stop loss position correspondingly when the position increases. In accordance with this principle, please ensure that your stop loss position is above the 200-period moving average until the price hits a new low.

Summarize

     In the next trading session, whether the price rises to around $240 or continues upward, the price pattern and chart indicators imply the expectation of a decline. The depth of the decline is uncertain. Strong support lines are waiting at $210 and $200. The priority now is to establish a short-term operation position at the best position in the chart.