Cosmos (ATOM) has been one of many best-performing crypto property of the previous few weeks. The distinguished altcoin has gained dozens of p.c towards the greenback and towards BTC over current weeks, setting new all-time highs.
Up to now 24 hours, the asset is up 3.6% and up 20% up to now seven days.
Cosmos may be poised to reverse, although, with the Tom Demark Sequential printing a textbook promote sign.
Associated Studying: These Three Tendencies Counsel Bitcoin Is Poised to Bounce After $1,000 Drop
Cosmos (ATOM) Prints Reversal Sign
Cosmos (ATOM) has fashioned a bearish reversal sign on its BTC pairing, in line with a Telegram channel monitoring situations of the Tom Demark Sequential.
The indicator is a time-based indicator that prints “9” and “13” candles when an asset is at an inflection level in its development.
Based on the Telegram channel, ATOM has fashioned a “sell 9” candle on the present weekly candle. This might set off a robust bearish drop within the weeks forward.
Chart of Cosmos' price motion towards BTC over the previous 12 months or so from a Telegram channel monitoring the Tom Demark Sequential. Chart from TradingView.com
The Tom Demark Sequential has had respectable success with Cosmos to this point.
As might be seen with the chart above, a Tom Demark “Buy 9” was fashioned after a robust drawdown. The asset then bounced by dozens of p.c within the months that adopted.
Cosmos additionally flatlined within the two weeks after it fashioned a “sell 9” candle, however then proceeded to maneuver larger. Technically, this sign was not incorrect as TD Sequential “9” candles are seen when an asset consolidates, not at reversal factors.
Associated Studying: Crypto Tidbits: MicroStrategy’s $250m Bitcoin Buy, ETH DeFi Growth, BitMEX KYC
Bitcoin to Dictate Altcoin Directionality
Bitcoin is prone to dictate the directionality of altcoins, each towards the greenback and towards BTC. Volatility within the price of the main cryptocurrency has typically meant that altcoins underperform. As Mohit Sorout of Bitazu Capital wrote to Fintech Zoom;
“Most (altcoin) cycles in crypto are centered around bitcoin volatility. When it dries up, no one wants to trade btc which becomes evident from the volume as well. This leads to a large uptick in speculation on alts, driving their prices up – typically alts with strong narratives & large scale memetic behavior get the most volumes. It’s interesting to note that btc just experienced its one of the lowest volatility periods. Volatility is a sinusoidal wave & we just passed the trough region of it.”
Bitcoin is poised to see volatility as its price tightens within the vary between $11,000-12,000.
Associated Studying: Yearn.finance (YFI) Jumps 30% In direction of Bitcoin’s All-Time Excessive price of $20ok
Featured Picture from Shutterstock price tags: atomusd, atombtc Charts from TradingView.com After Parabolic Rally, Cosmos (ATOM) Simply Fashioned a Textbook Promote Sign