Polkadot [DOT] shot past the $5 resistance level last week when Bitcoin [BTC] broke above the $17.6k mark. DOT continued to have a bullish outlook on the higher timeframes. Both the market structure and the momentum favored the buyers on the daily timeframe.

Polkadot saw some bullish enthusiasm evaporate over the past week after the pullback from $6. However, the retest of $5.6 as support could have a significant bullish reaction in the days to come.

The $5 level was a psychological area of significance for traders, as a move above this level meant that the bulls were in control. The area of liquidity highlighted in red served as support in mid-December and was later flipped to resistance. An encouraging factor for bulls was the sharp move beyond the $5 resistance on 11 January.