Trade Setup: Polkadot Head and Shoulder Reversal

A head and shoulder reversal pattern has formed on $DOT. If BTC continues to dump it will drag down altcoins with it and this pattern will activate. If that happens I expect it will bounce around the 161.8 fibonacci extension which coincides with a retest of a major falling wedge pattern that we broke out of earlier this year.

I remain bullish on DOT in the long run and I am keeping an eye on the weekly cloud E2E trade which I expect will play out later this year. A short term dump will be a good opportunity to load up big for that.

Trade closed: stop reached:

The market has clearly reversed and also DOT just activated the edge to edge trade on the weekly timeframe that I was anticipating.