Will Cosmos Climb From Yearly Lows?

With Bitcoin weakening and entering a correction phase, traders and investors are increasingly looking to diversify their portfolios across other cryptocurrencies. At BITmarkets, we remain committed to delivering balanced and objective analyses, ensuring that our insights align with the current market landscape.

In this context, Cosmos stands out as a strong candidate—not only does it fit within a broader diversification strategy, but it also presents a confirmed technical setup. This provides traders with an opportunity to enter the market at current levels while following a well-defined strategy.

Daily time frame analysis

ATOMUSD - 1 Day Time Frame

Cosmos (ATOM) has fallen below a critical September 2024 low, with this breakdown occurring in early March. Following this decline, the price has hovered just above this key level multiple times, indicating a significant accumulation of Sell Stop orders within the market structure.

In such scenarios, this pattern often suggests that a short-term decline may still occur before any potential price increase. This would allow Sell Stop orders to be triggered and matched with new buy orders at a more favorable valuation, setting the stage for a potential market reversal and renewed upward momentum.

Cosmos price target

Within the current trading setup, a close above a critical resistance zone following a liquidity sweep suggests that the market now perceives this zone as a bullish parameter. Additionally, the emergence of a new support zone further strengthens the bullish outlook.

With these confirmations in place, traders may consider entering a buy position, with a protective Stop Loss order placed below the internal low, as indicated on the attached chart.

However, if the price closes below the newly formed support zone, selling part of the position may be a prudent risk management strategy, as an ideal scenario would see the price holding above this zone to maintain upward momentum.

For profit-taking, key Buy-Side Liquidity levels serve as optimal exit points. Selling portions of the position at these levels allows traders to secure realized gains while keeping a portion of the position open to capture further potential upside.