This is my honest take on PolkaDOT. That bitcoin drop was harsh and sudden no doubt about it, but with every crash comes an opportunity. It's unclear what will happen in the next day or so, but here are some potential trade set-ups that can be made.
For a long position, I would like to see a close on the 4H chart above the .618 Fibonacci extension line. It has some slight resistance and would also show a reversal into a short-term bull trend. From there we could expect it to make it back to where it was consolidating before the crash.
For a short position, It's getting close to breaking through the previous support after that flash crash. From there I could assume that it will climb downwards to test the next support level. But... after that, if that breaks. It won't be pretty. All the gains from March and April would be erased and I would then predict a bear trend for Dot.
While the project has a lot of hype and overall I expect the bull trend to continue it all mainly depends on one large factor. BITCOIN. Only time will tell.
NOTE: This is not financial advice. Enter your own trades at your own risk with a plan!
For a long position, I would like to see a close on the 4H chart above the .618 Fibonacci extension line. It has some slight resistance and would also show a reversal into a short-term bull trend. From there we could expect it to make it back to where it was consolidating before the crash.
For a short position, It's getting close to breaking through the previous support after that flash crash. From there I could assume that it will climb downwards to test the next support level. But... after that, if that breaks. It won't be pretty. All the gains from March and April would be erased and I would then predict a bear trend for Dot.
While the project has a lot of hype and overall I expect the bull trend to continue it all mainly depends on one large factor. BITCOIN. Only time will tell.
NOTE: This is not financial advice. Enter your own trades at your own risk with a plan!
Comment:
If you took a short on this chart congrats, we are approaching Bear territory so if you're still in the short, congratulations.