Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Bitcoin has been treading water for the past few days as it hovered around the $39k area. Heading into the weekend, forming a bias in both directions was a daunting task for Cosmos. The indicators and price action were not pointing in one direction. However, the Cosmos token was traded in an area where bulls would be interested in bidding. In the scenario where BTC can see a weekend pump above $39.2k, ATOM could see some gains the next day or two.
ATOM-1H
Source: ATOM/USDT on TradingView
In recent days, ATOM has traded within a tight price range of $27.2 to $28.56. In the coming hours, these are the two levels that would serve as support and resistance to the price respectively.
Last week saw an extended range (yellow) for ATOM, from $31.3 highs to the $27.2 lows. The middle of this range was at $29.25. This aside, the longer-term support and resistance levels were at $27.73 and $29.81.
That highlights the important short-term levels for ATOM. The coin traded at $27.83 and was quite close to the range lows of $27.2. Therefore, aggressive buyers might try to bid ATOM. Their plan of action would be to take profits on the $29.5 and $31.2 resistance bands.
rode
Source: ATOM/USDT on TradingView
The RSI made a higher high even as the price made a lower high (striped white), a hidden bearish divergence. In general, a bullish divergence in a downtrend sees a pullback, and a hidden bearish divergence after that would indicate a continuation of the downtrend.
The CMF was in neutral territory, while the CVD has shown some buying pressure in recent hours. Therefore, it seemed that the indicators could not come to an agreement. Bearish, Neutral or Bullish?
Conclusion
The price action has been bandwidth bound for the past week. In the past two days, the price has compressed further and $28.56 is a level the bulls would have to beat for the short-term bias to turn to bullish. The $27.2-$27.7 area should see demand for ATOM arrive, but if this territory is lost to the bears, a further downside would be made quite likely.
This post Aggressive buyers can make a profit at this level before ATOM moves further down
was published first on https://ambcrypto.com/aggressive-buyers-can-take-profit-at-this-level-before-atom-goes-further-down/
