Short

✴️ PolkaDot | One Candle

Updated

The marked session is a Doji (yesterday | 31-December 2023).
A Doji can mean indecision just as it can mean that a change of trend is about to take place.

26-Dec. also closed as a Doji; early signal that the trend is coming to an end.

The 31-Dec. Doji confirms a bearish bias because it happens as DOTUSDT moves and closes below EMA10 on a daily basis. (This matches a rejection below EMA100 on the weekly).

This signal alone can tells us that a correction is now close.

Namaste.

Note

A corrective phase is now confirmed.
I think it will be fast, hitting the low of the correction but followed by a prolonged recovery... We will see.

Note

Here DOTUSDT can be seen trading daily below EMA10 and EMA21, the bearish bias intact.

While Bitcoin and Binance Coin might look like recovering, this is not the case here... If PolkaDot goes, they all go because they move together.

Chainlink also paints a clear picture, I will update that one as well.

Note

Mixed signals?

The trend/bias is clear, it is bearish based on a lower high; Lower highs lead to lower lows but, DOTUSDT has a "strong RSI" as the reading is still above 50. The action is still happening above EMA21 and EMA10... These things don't matter because it is going down.

If prices move to the upside above a moving average or the RSI goes bullish while moving up, that would be good... But the RSI is above 50 trending down, while EMA21 and EMA10 are being tested as support as prices drop.

Expect lower.

The orange lines on the chart can be the potential bottom for this corrective wave.

The Bitcoin Spot ETF "The Merge" hype is over, and so prices are set to move lower.

Namaste.

Note

PolkaDot already went through a major correction, it hit a major support already but there can be more... The Head & Shoulders pattern just showed up which points lower:

We wonder, why such a strong correction when this one didn't grow as much as the rest?

The market doesn't know nor care about our hopes and expectations, it only knows to look for liquidity and to follow the cycles...

➖ When the time to drop comes, it drops regardless of the price.
➖ When the time to rise comes it rises, regardless of the sentiment, bad news and overall market.

It will continue in correction mode until the corrective phase is over and done.

Namaste.

AlanSantana

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