Bitcoin futures data counters the assumption that BTC’s rally to $42,000 was primarily propelled by shorts liquidations. What is next for BTC?
Polkadot (DOT) Price Slumps Below $6 – Any Chances For Reversal?
The price of Polkadot (DOT) has been gradually moving south over the past few days. The price decline cuts across the entire crypto market, with strong signs of bears. The cumulative market cap has dropped by 2.58% to sit at $1.25 trillion in 24 hours.
DOT has finally lost its grip on the $6 region as the bears became aggressive on the token over the past 24 hours. The market is wondering if Polkadot still has a chance to reverse the downtrend.
Polkadot Price Drops Drastically With Prevailing Bearish Trend
The past few days seem to be turning out more negatively for DOT. The asset hovered between $6.1 and $6.9 last week except on April 21, when it dipped.
Currently, the 60-day and 90-day price action for Polkadot shows negative values of 4.45% and 5.36%, respectively. Also, DOT dipped by 12.46% over the past 7 days.
After losing its hold on the price level of $7 in February, DOT has maintained a trading price within the $6 region. As of April 21, the price of DOT dropped to its resistance point of $5.8 before correcting.
However, the price analysis of DOT for the past 24 hours shows the token is gradually going down again within the past few hours.
At the time of writing, DOT is trading at $5.921, indicating a slight reversal after plunging. The bearish push on DOT from the past few days has spilled over to the weekend.
The crypto market is undergoing a bearish trend, with most crypto assets battling for price stability. Polkadot is included in the market performance. Hence, the selling pressure for the token has exceeded its buying pressure, forcing the price of DOT below the $6 region.
Bears Push DOT Below $6
After three consecutive red days, DOT has formed a green candle on the price chart. However, the bears are still in control as they struggle to reclaim past price levels.
DOT has dropped below its 50-day and 200-day Simple Moving Averages (SMA), indicating a bearish sentiment in the short and long term.
DOT’s support levels are $5.15 and $5.75. A decline below its support will bring further price fall. Also, the resistance levels are $6.71 and $7.89. However, the $6 price level has transformed into a psychological resistance level.
The Relative Strength Index (RSI) indicator is 39.74, close to the oversold region of 30. However, the indicator points upwards, suggesting a bullish reversal in the short term.
DOT’s indicators are mostly bearish. Its next price action depends on traders’ decisions in the coming weeks. Further drop into the oversold region will likely lead to a trend reversal at the $5.75 support level.
Featured image from Pixabay and chart from Tradingview
How to trade crypto using BTC dominance?
BTC dominance can directly affect altcoins by displaying the market’s trading volume in BTC vs. altcoins.
A Never Wrong Bearish Bitcoin Signal Just Triggered
Bitcoin is likely to enter a bearish market as a never-before wrong signal just got triggered.
Bitcoin Headed Towards Bear Market?
As pointed out by a pseudonymous trader on Twitter, there is a certain signal that has consistently been right in the previous BTC cycles.
The signal in question is the Super Guppy indicator, a method that is based on exponential moving averages. Simply put, the technique is used to capture the difference between the price and value of Bitcoin.
Using Super Guppy, it becomes possible to tell whether the market is bearish or bullish.
Let’s take a look at the previous Bitcoin cycles. Starting with the 2011 run, here is how the Super Guppy chart looked like:
The 2011 BraveNewCoin Liquid Index For Bitcoin
Note that when the market becomes bullish, Super Guppy turns green. Similarly, for a bearish one, the indicator turns red.
As you can see in the above chart, Super Guppy was right about the Bitcoin market during the period.
Next, here is how the 2014 run looked like:
The 2014 run forms two peaks before going all the way down
Similar to the 2011 run, the 2014 cycle was also predicted accurately by Super Guppy. Here, another bullish reversal happened in the middle of the cycle, which the technique was also right about.
Related Reading | Bitcoin Hash Rate Goes On Death Spiral Post China’s Crackdown On Miners
Finally, to add to the credibility of the method, here is the 2018 cycle:
Super Guppy indicated correctly about the market during this cycle as well.
A common misconception regarding the method of moving averages is that it is a lagging indicator, and it only notes the past trend. However, that is untrue; Super Guppy is rather a warning for the upcoming market trend.
Is It Truly A Bearish Market?
Now that it seems like the Supper Guppy indicator does seem to hold some weight given past cycles, here is how the 2020 BTC cycle looks like at the moment:
The current cycle
As Super Guppy has turned red now, and given the pattern of the other curves, it seems like the cycle is entering into a bearish trend.
Related Reading | TA: Bitcoin Stuck Near $35K, What Could Trigger A Strong Rally
However, it doesn’t mean BTC is going to hit rock-bottom. It’s possible the bear market is only short-term, and soon the indicator might turn green again.
Also, some other signals show that Bitcoin hasn’t reached its peak yet, which means the cycle might indeed see another bullish reversal.
At the time of writing, BTC is priced around $36k, up 14% in the past 7 days. 
Bitcoin seems to regain an upwards trend | Source: BTCUSD on TradingView
Some other signals also show that whales have started accumulating, which is another positive sign for the market.
Featured image from Unsplash.com, charts from TradingView.com
Bitcoin’s Price Slides $1,000 in 30 Minutes After Margin Calls at Bitmex
Bitcoin tumbled 9 percent in a half-hour Tuesday, sending prices to the lowest in three months, following margin calls at Bitmex.
