BTC inside Descending Channel!

19 gen 2023

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.