๐Buckle up, Bitcoin enthusiasts! Polkadot (DOT) is currently experiencing a bearish trend, with a significant drop in demand and intensified selling activity. The price has plunged below the critical $6 support region, triggering a flurry of long liquidations. ๐
The daily chart reveals aggressive selling near the $6 support region, indicating a lack of sufficient demand. The price has breached this substantial support, aligning with the lower boundary of a multi-month triangle and previous major swing lows. This is a notable bearish sign. ๐ฌ
The 100-day moving average is on the brink of crossing below the 200-day moving average, signaling a death cross. This development further suggests a prevailing bearish sentiment in the market. A sustained bearish trend towards lower price levels is likely if the breakout is confirmed with a successful pullback. ๐
On the 4-hour chart, Polkadot faced significant rejection near the $6.8 supply zone after an impulsive surge. This completed a pullback to the broken region and verified the initial breakout, indicating the sellersโ dominance. ๐
However, the price action in the coming days will determine the breakoutโs validity. If a pullback occurs and holds below the $6 mark, the continuation of the bearish trend will be imminent. ๐ง
Analyzing the futures market sentiment can provide valuable insights into the cryptocurrencyโs potential future path. The recent bearish descent is mirrored by a significant plunge in the Open Interest (OI) metric, reaching its lowest value. This indicates a lack of interest from market participants in taking aggressive long positions. ๐
Unless a change in the upcoming days brings demand back into the market, the bearish trend is likely to continue. So, keep your eyes peeled, Bitcoin lovers! ๐