I’m expecting BTC to make a local top around 59K before going into another ABC type correction. The 59.4-5k level can be viewed as part of a larger ABC correction where the B leg is around the 59.4-59.5k level so we most likely will be able to pup up above this before being pulled back to maintain a bullish momentum.
While all of this is happening ALTS have been showing a decline while BTC .D has been increasing. When BTC makes it local high and pullbacks I expect alts to pullback with it.
Looking at DOT/USDT here we sort of did a V shaped recovery pattern. A breakdown out of this seems more likely given the current market sentiment but does not have to be necessary.
In case of a breakdown I expect the red boxes to hold DOT fairly well. We’ve to also keep in mind most market structures this cycle have been more of a U shaped pattern (rounded bottoms) rather than V shaped. My worst case scenario would be that the liquidity within the V shaped would hold.
Now for the bullish case, there is always a possibility that DOT/USDT breaks above this range. If this happens I expect DOT to go into price discovery and set new highs. At the least the possibility of DOT tapping its prev ATH would be very likely in case of a BREAKUP.
Please note, this is not financial advice nor is it advice of any sort.
I post these ideas solely for the sake of keeping myself in check and testing myself. It’s always better to have something to hold yourself accountable over. This is merely a paper trade for me.
Thankyou for reading.