Technical Analysis and Market Entry: DASH/USDT Subject To A Bearish Breakout
DASH/USDT: Recent Price Behaviour
The DASH price has entered into a cooling period, following a significant bull run that commenced at the start of the month. DASH/USDT was trading down at depressed levels of $40, right at the beginning of the year. It came following a heavy beating in the price from the second half of 2019, after initially starting the year strong.
DASH/USDT bears drove the price from heights of $188 in June, down to $38 in December 2019. It was a significant drop of some 80%, a very punishing bear market, which was observed across the industry. The levels that the price was driven to were the lowest since March 2017. It was a time when DASH was somewhat still well and truly within its infancy.
Upside Targets Successfully Hit
In the last DASH article, we noted the upside targets of; $70.00, $80.00 and $85.00, which the bulls successfully achieved. The price was aggressively driven higher than these levels, after smashing the psychological $100 mark. DASH/USDT had jumped up to $144, the highest seen since July 2019, when the market was heading to the south.
Weekly Chart View
Price action via the weekly chart view remains very much bullish; there is a lack of signage that this will be changing anytime soon. DASH/USDT has been running to the upside for four straight weeks, the most consecutive run since April 2019. It gained as much as 271% within the noted period, as the bulls look to set out to recover the heavy beating at the back end of last year.
Last week’s bullish candlestick left a large wick to the upside, which could still technically be filled. However, the bulls are going to need to regather upside momentum, given this current cooling period being observed.
Daily Chart View
Over the last five days, DASH/USDT has been narrowing within a bearish pennant structure. The sellers are currently forcing a breach to the downside. A breakout and closure via the daily could prove to be punishing for the price. It could very much spark a fresh wave of selling pressure, resulting in a substantial price reversal.
Given the above-described pennant, short positions look appropriate, as the price further falls victim of touted profit-taking. Should the price see the daily closure outside of this pennant, then entries would be ideal around $105-103. Targets to the downside; $90 (50% Fibonacci) and $77.50 (61.85 Fibonacci). Stops to be placed at $111.50, just above the penannt.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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