Polkadot: How should traders navigate DOT’s daily bearish breaker?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
The release of the CPI data was just around the corner, at the time of writing. Ease in inflation is expected, but is this expectation already priced in? Does that explain the recent Bitcoin pump right into a zone of resistance at this critical moment? And, what can that mean for Polkadot traders?
Read Polkadot’s [DOT] Price Prediction 2023-24
Traders can prepare themselves for the bullish and the bearish scenarios. Since DOT is also at a critical inflection point, its next leg is not yet certain. Evidence for the next move can be awaited before assuming positions in the market.
Source: DOT/USDT on TradingView
A former bullish order block, which was flipped to a bearish breaker in early March, was highlighted by the red box. At the time of writing, the price was within this zone, testing it as a zone of supply. Moreover, this area had confluence with the $6.1-level of resistance. Bitcoin was trading just below the $25.2k resistance, which marked the highs of August 2022 and February.
If BTC can break out past this resistance, it would signal bullish sentiment across the market. This could prime DOT to climb past the $6.1-level as well. However, a daily session close above the breaker would be required before buyers can look for opportunities to enter long positions. The market structure was on the verge of flipping bullish as well, as the recent lower high at $6.06 from 5 March could be beaten.
On the other hand, if the price sees rejection and falls beneath the $5.75-level, it would be a sign that bears had taken control. Short sellers can thereafter look to short the asset,
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