- Polkadot made a new low for the yr
- All 2023 gains are gone as bears keep selling DOT/USD
- If Jerome Powell delivers a hawkish speech right now, a descending triangle factors to additional draw back for the DOT/USD pair
The cryptocurrency market rallied at the begin of the yr. Following a bearish 2022, traders noticed the begin of the new yr as the starting of a new bull market.
Bitcoin led, and different cryptocurrencies adopted. But not all cash managed to shut close to their yearly highs.
For instance, Polkadot made a new low for the yr. More exactly, the DOT/USD pair gave again all of its 2023 gains, and issues don’t look good for traders.
That is especially true forward of the Fed’s Chair Jerome Powell’s testimony due right now. He will testify about the semi-annual financial coverage report in entrance of the Senate Banking Committee in Washington, D.C., later right now, and markets are keen to search out out what he’s going to say about the future funds fee.
Any hawkish commentary ought to ship the U.S. greenback larger throughout the board. Not solely fiat currencies will react – however the crypto ones too.
Coupled with the technical evaluation image, the bias is bearish, as identified by a descending triangle.
A descending triangle spells bother for DOT/USD
A descending triangle is a bearish continuation sample. Hence, the worth motion following the sample ought to proceed in the identical route as the foremost development traveled.
The foremost development is bearish, given the indisputable fact that DOT/USD dropped from above $52 at the peak of 2021 to the present $4.7.
To verify the bearish sample, the market ought to journey a distance equal to not less than the longest phase of the triangle. Calculating it doesn’t make sense, as it factors to nearly 0.
I’m not saying that Polkadot will go to 0. I do state that earlier than shopping for low-cost cash, one needs to be higher off the greater image and searching for the apparent on a chart. In this case, as 2023 gains are gone, bulls are trapped. Add the descending triangle, and the bias stays bearish, not bullish.
