Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Cosmos’ funding charge was strongly adverse, in response to the 1-Day Funding Rate knowledge on Coinglass. This meant that quick positions paid the lengthy positions periodically, and confirmed speculators had been bearishly positioned over yesterday.
Certainly, a fall from $14.6 to $13.5 was seen, earlier than a bounce to $14. A more in-depth inspection of the worth charts confirmed a bearish transfer over the previous week.
ATOM- 12-Hour Chart
ATOM took a 20% hit from the $16.5 mark to achieve an important zone of assist at $13 over the previous week. Highlighted in cyan, this zone of liquidity has been vital since mid-August. It acted as resistance as much as early September and was decisively damaged.
The buying and selling quantity has additionally been sizeable in September. Over the subsequent few days, a retest of the assist zone might supply a shopping for alternative. But, it should be remembered that Bitcoin has a bearish bias till the $19.6k mark will be damaged.
The truth that the $13.87 low from mid-September was damaged meant the market has a bearish bias on the upper timeframe. A day by day session shut under $12.85-$13 would counsel one other plunge towards the $11.67 mark.
The Fibonacci retracement ranges (yellow) confirmed the 61.8% degree to lie at $12.85. This degree had confluence with the assist zone, additional reinforcing its significance.
The Relative Energy Index (RSI) slipped under impartial 50 and hinted at a flip in momentum towards bearish. In distinction, the On-Steadiness Quantity (OBV) was on an uptrend to point out sturdy shopping for quantity in current weeks. The Chaikin Cash Stream (CMF) additionally fell towards the impartial zone.
The inference from the indications was a blended bunch, with bearish momentum however with out heavy promoting quantity.
The autumn to the assist zone at $13 meant merchants and buyers may need a shopping for alternative on their palms. A day by day session shut under $12.85 would point out ATOM was headed towards the $11.6 mark. A profitable protection of the $13 area over the subsequent week might begin ATOM on a transfer again towards the $16.6 highs. Persistence and low-risk positions could possibly be the best way to navigate the Cosmos charts.