BTCUSDT after PPI news and hawkish statement by the FEDs, seen a massive sell off directly at $21600 range and broke out from the huge ascending wedge, showing that the bullish trend is ending. The price broke down and reached the fib point at 0.786 $20500 and retraced back to the top.At current time, we can see that a descending channel had formed and with the current bearish sentiment post PPI, we believe it is a good time to do a short down. Few signs as below
-Hawkish statement by Fed
-US Stocks sell off
-US opening in around 3 hours (Futures heading down, expecting more down)
-DXY pumped on the support
As confirmed by the points on the chart, the descending channel now had just reached the upper TL and provide a good setup for a short trade.
We expect the price to drop to the next fib point at around $19600 with a tight stoploss just above the upper trendline at $21900.
Will update the idea as the trade goes on.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.