🎯ATOM - primed for pullback?
🎯ATOM has been one of the most bullish coins this summer, rising 210% from its bottom in June. Consequently, its Bitcoin valuation has risen ~250%.
Recently it double topped around .382 Fib measured from last weekly swing high in April - this suggests we still have bearishness on the long term.
It also tapped into the .782 Fib measured from previous daily swing high in May before the meltdown - this suggests that a pullback will not go too deep too soon towards previous lows.
The big RSI bearish divergence already pointed out that we are due for a correction.
The FOMC press conference today could provide the catalyst for that pullback.
However, there still might be some gas left in this up move, so I don't exclude the possibility to have another leg up before a deeper pullback.🎯
📈The game plan:
1. ATOM needs to break down the 4h 200 EMA support it currently sits on. Wait for candle close confirmation.
2. Scout the ATOMBTC chart - if it goes below previous swing low (68890 satoshi) we have another confirmation.
3. ATOM needs to break down below previous swing low between the two tops (13.225 $). Wait for candle close confirmation.
Profit levels are at 12$ and 10.6$, based on Volume Profiles, depending on your risk appetite. The trendlines could provide support on both charts, so be careful to take profits in time.
Don't rush into it. Let the news be digested by the market. We need at least 75 pp increase on the federal rate to keep ranging, and 100 pp rate increase to move the markets down.
If we keep ranging, I would be more inclined to do this trade on the ATOMBTC pair.
This post links back to yesterday's post regarding overvalued altcoins - thought it would help to share a concrete example.
💎Looking forward for your questions below. If this post provided you value, follow for more.
🚨Disclaimer: this post is for educational purposes only, not financial advice. Do your own due diligence.
Recently it double topped around .382 Fib measured from last weekly swing high in April - this suggests we still have bearishness on the long term.
It also tapped into the .782 Fib measured from previous daily swing high in May before the meltdown - this suggests that a pullback will not go too deep too soon towards previous lows.
The big RSI bearish divergence already pointed out that we are due for a correction.
The FOMC press conference today could provide the catalyst for that pullback.
However, there still might be some gas left in this up move, so I don't exclude the possibility to have another leg up before a deeper pullback.🎯
📈The game plan:
1. ATOM needs to break down the 4h 200 EMA support it currently sits on. Wait for candle close confirmation.
2. Scout the ATOMBTC chart - if it goes below previous swing low (68890 satoshi) we have another confirmation.
3. ATOM needs to break down below previous swing low between the two tops (13.225 $). Wait for candle close confirmation.
Profit levels are at 12$ and 10.6$, based on Volume Profiles, depending on your risk appetite. The trendlines could provide support on both charts, so be careful to take profits in time.
Don't rush into it. Let the news be digested by the market. We need at least 75 pp increase on the federal rate to keep ranging, and 100 pp rate increase to move the markets down.
If we keep ranging, I would be more inclined to do this trade on the ATOMBTC pair.
This post links back to yesterday's post regarding overvalued altcoins - thought it would help to share a concrete example.
💎Looking forward for your questions below. If this post provided you value, follow for more.
🚨Disclaimer: this post is for educational purposes only, not financial advice. Do your own due diligence.
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