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Bitcoin price has fallen below $60,000 for the first time since early March, causing investors to worry about potentially larger dips. As this article is being prepared, BTC is finding buyers at $61,600. Most altcoins have begun to recover from their recent rises. But is this also the case for DOT Coin?
Polkadot (DOT)
Bitcoin‘s price uncertainty generally leads to a lack of demand for altcoins. The price, lingering in a low and narrow range, supports concerns about potential deeper lows. On the other hand, a new attempt below $60,000 within 24 hours also shows there is some justification for these concerns.
However, the good news is that if Israel does not make a contrary statement, it appears to have abandoned a retaliation that could escalate tensions. Although a postponement to an indefinite date is mentioned, the cooling of the situation means that the delayed response this week is not expected to have the feared major consequences.
So shouldn’t the appetite in the cryptocurrency markets recover? This was not the only outcome, and the bad inflation data also keeps medium-term risks alive. Specifically for DOT Coin, the Sharpe Ratio is currently -5.17, marking a seven-month low. This metric, which measures return per unit of risk, highlights the weakness of a short-term recovery for DOT Coin.
DOT Coin Predictions
In futures trading, open positions for many cryptocurrencies have melted away. Considering the falling volumes in spot markets, this is not surprising. Except for a few altcoins, a lack of interest dominates the overall market. For DOT Coin, open interest dropped by $154 million in six days, illustrating the investors’ flight.
If DOT Coin starts closing below $6.3, a retreat to as low as $5.7 is expected in this scenario. Such a drop would represent a four-month low in price and potentially establish a market base for 2024. Considering reasons like the decrease in regional tensions, the support for DOT Coin could remain strong for now, with potential surprise movements towards $7-8 if it closes above $6.3. However, for this to happen, BTC must climb to safer regions.
