We like buying the dip in Cosmos (ATOM) at these levels. Risk reward is good for traders near 4230. We hope that Bitcoin ( BTC ) stabilizes and that allows alts to continue their up move.
Assuming the crypto market is not crashing, we think any dip in Cosmos (ATOM) is a buy for an eventual move to over 5000. If Bitcoin ( BTC ) continues to stagnate, we think Cosmos (ATOM) can benefit.
We are warming up the idea that Cosmos (ATOM) has long term upside potential. ATOM may be a good long play on days when crypto is green.
We believe the minimum upside target could be the 23% retracement at 3382. We believe the up move may continue until ATOMBTC reaches what Elliot wave practitioners call "the previous 4th."
On the bearish side, ATOMBTC rallied and then failed, right at the 23% retracement of its June - September down move. Looking at this, you could make an argument that ATOMBTC will return to its low or make a new low.
ATOM has hit our target near 3382. That level is the 23% retracement of the recent down move. If you assume ATOM is still in a bear market, then today's 11% move should complete the corrective rally. That would leave ATOM at the mercy of any new up move in BTC.
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