Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- ATOM’s second leg of restoration faltered after BTC’s pullback.
- Bearish sentiment elevated within the futures market.
Cosmos [ATOM] short-sellers grabbed shorting alternatives following Bitcoin’s [BTC] pullback. The king coin slid to the $30k zone after hitting a brand new 2023 excessive of $31.4k on 23 June.
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ATOM took a cue from BTC and reversed a few of the latest positive aspects, making a $10 psychological degree cross a delayed goal for bulls.
Nonetheless, BTC hasn’t misplaced maintain of the $30k zone as of press time, that means the bullish sentiment nonetheless prevails, and the short-term pullback might not morph right into a downtrend.
Are sellers eyeing $8.98?
Supply: ATOM/USDT on TradingView
The primary leg of ATOM’s restoration, from 10 June, entered a slender worth consolidation vary of $8.44 – $8.98. The second leg of the rally began round 20 June and smashed the vary excessive of $8.98, solely to falter on the earlier decrease excessive of $9.63 – barely beneath the $10 psychological degree.
Sellers gained entry on the $9.63 roadblock and focused positive aspects on the earlier range-high of $8.93. The goal additionally aligns with the 50% Fib and the retracement might ease at $8.93 if BTC doesn’t drop beneath $30k.
Nonetheless, the RSI has eased on the 50-median mark and hasn’t dropped beneath the impartial degree prior to now few days. Additionally, the CMF (Chaikin Cash Circulation) was above the zero mark, that means capital inflows remained secure.
Collectively, the indications level to a doable rebound at $8.93. It could additionally occur sooner with out touching the $8.93 if BTC recovers strongly from the pullback, entrapping sellers right into a bear lure. The quick targets will probably be $9.63 and $10.0 for bulls.
A bearish grip; a wavering open rates of interest
Supply: Coinglass
In keeping with Coinglass, ATOM’s open rates of interest have been wavering because the second half of June. This might restrict a robust bounce above $9.5 or $10, because it denoted wavering demand within the futures market.
How a lot are 1,10,100 ATOMs value at this time?
In addition to, extra merchants had been shorting the asset on the futures market within the 4-hour timeframe. Though this paints a bearish short-term outlook, a robust BTC rebound earlier than ATOM hits the short-term assist of $8.93 might wreck many brief positions.
A rebound from $8.93 or a pullback retest on $9.63 might supply new shopping for alternatives, offered BTC stays bullish.
