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- Polkadot made a brand new low for the yr
- All 2023 good points are gone as bears maintain promoting DOT/USD
- If Jerome Powell delivers a hawkish speech in the present day, a descending triangle factors to additional draw back for the DOT/USD pair
The cryptocurrency market rallied in the beginning of the yr. Following a bearish 2022, traders noticed the beginning of the brand new yr as the start of a brand new bull market.
Bitcoin led, and different cryptocurrencies adopted. However not all cash managed to shut close to their yearly highs.
For instance, Polkadot made a brand new low for the yr. Extra exactly, the DOT/USD pair gave again all of its 2023 good points, and issues don’t look good for traders.
That’s significantly true forward of the Fed’s Chair Jerome Powell’s testimony due in the present day. He’ll testify in regards to the semi-annual financial coverage report in entrance of the Senate Banking Committee in Washington, D.C., later in the present day, and markets are keen to seek out out what he’s going to say in regards to the future funds charge.
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.
Polkadot chart by TradingView
A descending triangle spells hassle for DOT/USD
A descending triangle is a bearish continuation sample. Therefore, the value motion following the sample ought to proceed in the identical course as the principle development traveled.
The principle development is bearish, given the truth that DOT/USD dropped from above $52 on the peak of 2021 to the present $4.7.
To substantiate the bearish sample, the market ought to journey a distance equal to not less than the longest section of the triangle. Calculating it doesn’t make sense, because it factors to virtually 0.
I’m not saying that Polkadot will go to 0. I do state that earlier than shopping for low-cost cash, one must be higher off trying on the larger image and in search of the plain on a chart. On this case, as 2023 good points are gone, bulls are trapped. Add the descending triangle, and the bias stays bearish, not bullish.