Today I will be sharing my analysis of the DOTUSD pair and where I think price action is headed.
Past
After a nice run up to just shy of the $7.00 mark, price made sharp pullback to the .786 fib level. This is a little deeper pullback than I would like to see, however, price quickly rebounded off of this level and consolidated right above .618, before beginning to trade nicely within the ascending channel depicted on the chart.
Future
Currently price is testing the 50 period simple MA on the 4hr timeframe just below the support of the aforementioned channel. While some may consider this a breach of support, I'm not too concerned about that due very the low volume on the break (this suggests the downward pressure will not be sustained but is definitely something to keep an eye on). Based on all the hype right now in this market, the RSI staying on the bullish side and a bounce off of the .618 fib level, I'm leaning towards a retest of previous swing highs within the next few weeks. However, if price closes below $4.70, I think we will see a retest of lows first.
Where do you all think DOTUSD is headed? Let me know in the comments.
Past
After a nice run up to just shy of the $7.00 mark, price made sharp pullback to the .786 fib level. This is a little deeper pullback than I would like to see, however, price quickly rebounded off of this level and consolidated right above .618, before beginning to trade nicely within the ascending channel depicted on the chart.
Future
Currently price is testing the 50 period simple MA on the 4hr timeframe just below the support of the aforementioned channel. While some may consider this a breach of support, I'm not too concerned about that due very the low volume on the break (this suggests the downward pressure will not be sustained but is definitely something to keep an eye on). Based on all the hype right now in this market, the RSI staying on the bullish side and a bounce off of the .618 fib level, I'm leaning towards a retest of previous swing highs within the next few weeks. However, if price closes below $4.70, I think we will see a retest of lows first.
Where do you all think DOTUSD is headed? Let me know in the comments.