Cosmos collects liquidity and prepares for a move up, but only if ATOM…

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Cosmos’ funding rate was strongly negative, according to the 1-Day Funding Rate data on Coinglass. This meant that short positions paid the long positions periodically, and showed speculators were bearishly positioned over the previous day.

Indeed, a fall from $14.6 to $13.5 was seen, before a bounce to $14. A closer inspection of the price charts showed a bearish move over the past week.

Source: ATOM/USDT on TradingView

ATOM took a 20% hit from the $16.5 mark to reach a crucial zone of support at $13 over the past week. Highlighted in cyan, this zone of liquidity has been important since mid-August. It acted as resistance up to early September and was decisively broken.

The trading volume has also been sizeable in September. Over the next few days, a retest of the support zone could offer a buying opportunity. Yet, it must be remembered that Bitcoin has a bearish bias until the $19.6k mark can be broken.

The fact that the $13.87 low from mid-September was broken meant the market has a bearish bias on the higher timeframe. A daily session close below $12.85-$13 would suggest another plunge toward the $11.67 mark.

The Fibonacci retracement levels (yellow) showed the 61.8% level to lie at $12.85. This level had confluence with the support zone, further reinforcing its significance.

Source: ATOM/USDT on TradingView

The Relative Strength Index (RSI) slipped below neutral 50 and hinted at a flip in momentum toward bearish. In contrast, the On-Balance Volume (OBV) was on an uptrend to show strong buying volume in recent weeks. The Chaikin Money Flow (CMF) also fell toward the neutral zone.

The inference