ATOM Cosmos crypto ready for reversal: Expect a price rally in March
ATOM’s Cosmos crypto price shows signs of a completed correction that could lead to a sustained upward move.
Cosmos is a decentralized, scalable, interoperable ecosystem of interconnected independent blockchains built on the Tendermint Core protocol. It is a potential competitor to Ethereum. The goal of the project is to create a “blockchain internet” in which participants interact with each other in a decentralized way. Cosmos Hub’s native token is called ATOM. Holders can add it to stacking or delegate it to a validator to generate additional revenue.
Cosmos ATOM crypto price prediction
According to the weekly chart, ATOM is trading in a long-term range with limits of $8.90 and $15.60, which have been repeatedly confirmed since July 2022. Even though the asset was never able to break the upper boundary of the range, the weekly RSI looks bullish. The indicator has rebounded from the descending resistance line and is above the 50 level, which is considered a positive sign.
If Cosmos manages to break above $15.6, the price of the token might rise to the next resistance at $22. Otherwise, the asset is expected to fall to the nearest support area.
ATOM price reversal is just around the corner
The technical analysis of the six-hour chart shows that the ATOM price rebounded from the rising support line and continued to the upside and then corrected. If you combine this with the wave chart, we can assume that the asset has completed a five-wave upward movement. If so, its price is currently in wave C of the A-B-C correction.
The most likely level to complete the wave would be the area between $11.95 and $12, created by the 0.5 Fibonacci support level and the A:C wave ratio of 1:1. In this case, we can expect the ATOM price to reach $15.45 and head towards $22. A close below $11.12 would put this scenario in jeopardy, while a drop below $8.43 would cancel the long-term bullish outlook and could send ATOM towards $5.
We previously reported that Americans are interested in cryptocurrency despite strict regulation.
Cryptotraders lost more than $250,000,000 in liquidations after Fed rate hike
Cryptotraders had a tough day: almost 68,000 positions were liquidated on exchanges in the last 24 hours, and the total volume of liquidations exceeded $257,000,000. All this happened against the news of the US Federal Reserve’s rate hike and another Securities and Exchange Commission regulatory action against cryptocurrencies.
Cryptotraders lost $132,000,000 in BTC
Bitcoin, Ethereum, and Ripple were the leaders in the number of forcibly closed positions. BTC liquidations totaled almost $132,000,000; Ethereum traders lost $51,000,000. XRP positions accounted for about $8,000,000 of liquidations. Bitmex exchange executed the largest order of $7.39,000,000.
Cryptocurrency market capitalization has declined 2% in the last 24 hours, but is still above the $1 trillion mark.
The weekly CoinShares report also recorded a massive outflow of funds for six consecutive weeks. During that period, nearly $500,000,000 was withdrawn from cryptocurrency platforms, with $113,000,000 coming from bitcoin. Analysts at the company believe the outflow is due to liquidity needs during the banking crisis rather than a negative outlook. The company mentions that a similar scenario was seen in March 2020 amid a COVID-19-induced panic.
Regulators continue to hunt the cryptobusiness
Another reason for the increased volatility in the market has been harsh action from U.S. regulators. Last night it became known that the U.S. Securities and Exchange Commission sued cryptomagnate Justin Sun, accusing him of fraud and market manipulation.
The SEC also issued a notice of wrongdoing against Coinbase, the largest U.S. cryptocurrency exchange. The securities regulator sued Coinbase Global Inc, for some of the products it offers.
We previously reported that Bitcoin (BTC) tests $28,000, but onchain metrics urge caution.
Binance was caught circumventing KYC to register Chinese clients
Employees of the cryptocurrency exchange Binance help clients from China to bypass compliance and verification. CNBC writes about it, citing hundreds of corporate emails from exchange employees on Discord and Telegram. It is reported that Binance has helped over 200,000 users register, bypassing its own security system. One case describes correspondence between a user from China and a Binance employee.
The employee under the pseudonym yaya.z suggested the user from China turn on a VPN, register as a Taiwanese resident and then return the location to China. Binance employees also advise customers not to use VPN services from the U.S., Hong Kong and Singapore, because the exchange does not provide services in those regions, writes CNBC. At the same time, Binance freely processes applications from U.S. email providers like Gmail or Outlook for registration.
The exchange even offers specialized mobile applications for customers from China. A CNBC reporter could download a special mobile application from Binance via email. At the same time, no VPN was needed to download the app, as the download was conducted through the domain of binance[.]com. It is also alleged that the exchange still verifies users with Chinese phone numbers.
An exchange spokesperson denied the existence of a special Chinese version of the mobile application. The exchange also added that it has improved the system to identify users from banned regions. CNBC notes that after providing evidence, Binance removed employee messages from corporate chats to circumvent KYC.
We previously reported that the Ethereum (ETH) price crossed the $1,800 mark, opening the way to $2,000.
Why cryptoanalysts expect bitcoin to fall
The market remains in a bearish trend and bitcoin (BTC) will resume its fall and test $16,000. There are two reasons:
The first statement can be confirmed or disproved by a technical analysis of the cryptocurrency market, but there is not enough additional information for the second.
The market capitalization of altcoins (ALTCAP) does hold nearly $605 billion of resistance. Although ALTCAP has risen above it several times, it didn’t develop above this area.
However, the daily RSI has broken through the bearish divergence trendline (green line). Such a breakout often precedes significant reversals into a bullish trendline. As a result, ALTCAP will move higher towards the $680B resistance area. If not, ALTCAP could fall back to the $518B support area.
There are also those who argue that bitcoin will test the $10000-$11000 area because there is a CME price gap that needs to be filled. The gap refers to the difference between the closing price of bitcoin futures on the Chicago Mercantile Exchange (CME) on Friday and the opening price on the following Monday.
We previously reported that Hong Kong has allocated another $50,000,000 to the crypto industry.
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