Technical analysis of BTC and DOT. 23/05/23

On the daily timeframe, the situation with Bitcoin remains unchanged since yesterday's analysis. BTC has slightly bounced off the support zone of $25,800-$27,000, but further confirmation can be seen on a lower timeframe. 

All other support and resistance levels remain the same.

On the H2 timeframe, the BTC price tested the support zone of $26,100-$26,500 and then reversed, approaching the resistance range of $27,300-$27,700. The prolonged sideways movement appears to be approaching its conclusion, indicated by diminishing trading volumes and an increased frequency of boundary tests. 

Upon a successful breach, the next resistance levels to monitor are the zone of $28,000-$28,300, and the $28,900 level. If buyers fail to exhibit sufficient strength and fail to break out of the ongoing flat pattern to the upside, the local minimum at $25,800 will act as the subsequent support level.

On the daily timeframe, Polkadot is currently trading within the support zone of $5.00-$5.35. The bearish momentum with consecutive lower lows remains intact. If the current level of buyer support fails to hold, the next key support level to watch is around $4.45.

The price level of $5.80 acts as the immediate resistance, where buyers might encounter selling pressure in case of an upward move. Further resistance zones are observed at $6.40-$7.00 and $7.40-$8.00.

On the H2 timeframe, the DOT price has been range-bound for the past two weeks, oscillating between the support zone of $5.20-$5.28 and the resistance zone of $5.43-$5.52. In the event of a breakout, the next levels of support to monitor are the local minimum at $5.12 and the psychological level at $5.00.

Regarding resistance levels, significant sell orders are clustered at $5.60, $5.67, and within the broader range of $5.78-$5.90. It is prudent to await a test of these levels before discussing further resistance targets.

It is important to acknowledge that the downward trend of Polkadot is also driven by fundamental factors, particularly the substantial unlocking of DOT tokens on parachain auctions. This factor should be taken into account when making decisions about opening positions.

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Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the Gagarin News editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.

TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.

Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.

К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).

Gray range on the chart — a support zone.

Red range on the chart — a resistance zone.

Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.

This analysis was informed by the following educational materials and articles from Gagarin News: