Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the opinion of the author.
Bitcoin [BTC] climbed previous the $20k mark, however even on the time of writing, the worth dipped again to $19.9k. This highlighted how necessary a resistance of $20.2k-$20.8k was for BTC. Cosmos [ATOM], like many different altcoins, has a behavior of climbing larger on the charts alongside Bitcoin. Due to this fact, any weak spot from the king would probably be mirrored within the value motion of ATOM itself.
ATOM- 12-Hour Chart
On the 12-hour chart, it may be seen that the previous two months of buying and selling have been a part of a gradual downtrend. Though ATOM managed to bounce from $5.55, the longer-term development remained unchallenged.
With a purpose to flip the bias from bearish to bullish, the worth must climb previous $10 and retest the $9.5 space as a requirement zone. The Relative Power Index (RSI) was above impartial 50 to indicate that the previous few weeks had some bullish momentum.
The On-Steadiness Quantity (OBV) had additionally crossed above resistance from mid-Might and instructed that demand was behind the rally from the $6 zone.
ATOM- 4-Hour Chart
On the four-hour chart, your complete space from $8.7-$9.5 has seen vital buying and selling exercise early in June. This demarcated this space as a zone of provide the place sellers would probably be sturdy.
On the similar time, the previous three weeks have seen ATOM type a collection of upper lows and better highs on the worth charts, suggesting a bullish transfer. But, would this provoke an uptrend, or was this a pullback earlier than one other slide downward for ATOM?
The upper timeframe charts confirmed that ATOM would wish to climb above $10 and $12.4 to flip the bias from bearish to bullish. Within the meantime, bulls would need to see the $8.6 space (cyan field) defended, and can be anticipating a transfer towards the $9.5 mark.
Bullish market members can discover the worth charts encouraging. The RSI backed up their bullish notion, and was properly above the impartial 50 and confirmed an uptrend in progress prior to now week. Nonetheless, though the worth made a better excessive above $8.6, the OBV was unable to push larger.
In truth, the OBV remained flat over the previous week, as did the Chaikin Cash Stream (CMF). This instructed an absence of shopping for stress behind ATOM’s rally.
Cosmos has seen consumers prior to now few weeks, however they seem like preventing an uphill battle. The $8.6 space introduced a beautiful, comparatively low-risk alternative to purchase Cosmos. A stop-loss beneath $8.4 might be set, and a retest of the demand zone generally is a shopping for alternative.
But, the volatility of Bitcoin might catch merchants unawares, and cautious place sizing can be key to threat administration.