- Cosmos (ATOM) encounters a significant .618 Fibonacci resistance after a massive multi-year breakout.
- Traders observe a bearish divergence, implying a short bias, but the market’s positive momentum adds complexity.
- Keep an eye out for a potential breakout above $8.701 or a trendline support breakdown while considering Bitcoin’s influence.
In a recent development, Cosmos (ATOM) has experienced a significant multi-year breakout. However, this surge has hit a roadblock as the price was met with rejection at the crucial 0.618 Fibonacci resistance level. The crypto market is now at a crossroads, with traders and investors closely monitoring the situation. Crypto analyst CryptoBusy has identified a bearish divergence in the price action of ATOM, suggesting a potential downturn in the near future. However, there is a twist in the tale as the overall market still maintains positive momentum, leaving traders in a dilemma.
As per a recent tweet by crypto analyst CryptoBusy, ATOM’s multi-year breakout faces resistance, but with a market in flux.
The expert’s sentiment, in this case, is leaning toward a short bias, indicating a bearish outlook for ATOM. This position is driven by the bearish divergence and the rejection at the Fibonacci resistance. But there’s a catch – the market’s bullish momentum casts a shadow of doubt on the situation.
At the time of the tweet, Cosmos (ATOM) was trading at approximately $8.52, reflecting a notable 8.73% increase over the past seven days. The coin held a market cap of $3,182,796,769, securing its position as the 24th largest cryptocurrency by market capitalization. In the last 24 hours, ATOM demonstrated a trading volume of $126,571,722, representing a 24.53% change in volume. Additionally, the volume-to-market cap ratio for ATOM is at 5.24%, underscoring its liquidity and the dynamic nature of its market activity.
Amidst this uncertainty, CryptoBusy suggests patience as a strategic approach for traders. The key takeaway here is to await a definitive signal. Traders are advised to monitor two critical scenarios. The first is a potential breakout, which would require a confirmation above the $8.701 mark. On the other hand, a breakdown of the current trendline support is another significant event to watch out for.
The crypto world is no stranger to sudden and dramatic shifts, and Cosmos (ATOM) is no exception. As the market holds its breath for the coin’s next move, it is essential to remain vigilant and react to the cues that the market provides. One additional factor to consider is the potential influence of Bitcoin on this situation. The crypto market often follows Bitcoin’s lead, and any correlated move by the king of cryptocurrencies could significantly impact the trajectory of Cosmos.
In conclusion, Cosmos (ATOM) has reached a crucial juncture in its price trajectory. After a remarkable multi-year breakout, it faces resistance at the 0.618 Fibonacci level, prompting a bearish sentiment from experts. However, the broader market’s positive momentum adds an element of uncertainty, emphasizing the need for patience. Traders and investors are advised to watch carefully on two critical scenarios, namely, a breakout above $8.701 or a breakdown of the current trendline support. The coming days will likely be pivotal in determining the fate of ATOM. Additionally, Bitcoin’s movements will play a role in shaping the future of Cosmos, highlighting the interconnected nature of the crypto market.