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Bitcoin, Cosmos, Aave Price Analysis: 04 January

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While the market-leading crypto failed to snap its immediate resistance near the $47,000 mark, its OBV upturned over the past week. This movement indicated a potential stalling of the sell-off. Meanwhile, Aave bulls strived to cross the 61.8% Fibonacci resistance.

Cosmos, on the other hand, formed an inverse head and shoulder and reached an overbought position.

Bitcoin (BTC)

TradingView, BTC/USD

Since striking its ATH on 10 November, BTC consistently marked lower peaks. As the fear sentiment kept surging, the largest crypto witnessed multiple sell-offs that hindered its recovery phase. Ever since BTC broke out of the bearish flag, it found reliable support at the golden 61.8% Fibonacci level for the past month.

Now, as the recent up-channel (yellow) saw a breakdown from the $52,000-mark, the king coin marked lower peaks while ensuring the $45,700-level. This trajectory indicated an increasing selling power. Meanwhile, as the fear and greed index plunged below the 25 mark, BTC fell below its 20-50-200 SMA.

At press time, BTC traded at $46,666. Although the RSI saw higher toughs, it continued to find resistance near the half-line. However, while the price marked lower peaks since 28 December, the OBV was upturned. This reading hinted at a possible reversal. Besides, the ADX displayed a weak directional trend for the crypto.

Cosmos (ATOM)

TradingView, ATOM/USDT

On its 4-hour chart, ATOM formed an inverse head and shoulder pattern over the past six weeks. Thus, after a nearly 63% rally (from 29 December low), the alt saw an expected breakout from the bullish pattern and traded near its two-month high at press time. This incline pushed ATOM above its 24-week Point of Control (red) at the $36-mark.

After retesting the $32.5-support for over seven weeks, the bulls finally initiated a sustained breakout for the past four days. However, the Volume oscillator marked lower peaks, instead of higher highs. Now, As the bulls face a hurdle at the $40.7-mark, the immediate testing support stood near $37. 

At press time, ATOM traded at $40.33. The RSI undeniably skewed in favor of the buyers in the overbought region. Also, the DMI confirmed RSI’s conclusion. Keeping the overbought RSI threat in mind, a near-term reversal should not surprise the investors/traders.


TradingView, AAVE/USD

The alt reversed its descent from the crucial $170-support on 20 December. It saw a staggering 76.79%ROI (from 20 December low) until it poked its six-week high on 28 December.

Since then, the bears have ensured the 61.8% Fibonacci resistance as the price action fell after marking a symmetrical triangle on its 4-hour chart. Over the past two days, the patterned breakout halted at the 61.8% resistance.

At press time, AAVE traded at $264.68 after noting a 5.6% 24-hour loss. The RSI wavered near the half-line and flashed neutrality. While the DMI displayed a bearish edge, the ADX displayed a weak directional trend for the alt.


With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.
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