Hello everyone.
On the daily chart, we can see major weaknesses in DOT, volume has been decreasing and open interest is down.
What is interesting is that the 0.236 FIB support did not hold and thus continued its break lower in the descending channel. We can see DOT is showing a bearish bias.
If the price moves below $6.15 support, we are strongly bearish in weekly trend.
In terms of macroeconomics, we have FOMC coming up tomorrow, with Powell to talk about inflation and recession concerns. The Fed's continued hawkishness is not promising for the crypto market. CPI is set to release on 13th July. If news is good, a bullish impulse could send DOT above 50 EMA resistance, and bearish momentum is invalidated.
How can we trade this?
My idea is:
SHORT @ 7.5 DOT/USD
TP: 4.15 DOT/USD
SL: 8.85 DOT/USD
Let me know your ideas below.
On the daily chart, we can see major weaknesses in DOT, volume has been decreasing and open interest is down.
What is interesting is that the 0.236 FIB support did not hold and thus continued its break lower in the descending channel. We can see DOT is showing a bearish bias.
If the price moves below $6.15 support, we are strongly bearish in weekly trend.
In terms of macroeconomics, we have FOMC coming up tomorrow, with Powell to talk about inflation and recession concerns. The Fed's continued hawkishness is not promising for the crypto market. CPI is set to release on 13th July. If news is good, a bullish impulse could send DOT above 50 EMA resistance, and bearish momentum is invalidated.
How can we trade this?
My idea is:
SHORT @ 7.5 DOT/USD
TP: 4.15 DOT/USD
SL: 8.85 DOT/USD
Let me know your ideas below.