Disclaimer: The results of the following analysis are the sole opinion of the author and should not be considered as investment advice

Bitcoin has been treading water over the past few days as it floats around $39,000. Going into the weekend, forming a bias against Cosmos in either direction is a difficult task. Indicators and price action are not pointing in a single direction. However, Cosmos' tokens are trading in areas where the bulls are interested in bidding. With BTC could see a weekend over $39.2k, ATOM could post some gains in the next day or two.

Atom- 1H

Cosmos deals in areas of interest to buyers, but needs to break out of this level

Source: ATOM/USDT on TradingView

Over the past few days, ATOM has traded within a narrow range of $27.2 to $28.56. In the next few hours, these two levels will act as support and resistance for the price, respectively.

Over the past week, ATOM's range (yellow) was much larger, from a high of $31.30 to a low of $27.20. The midpoint of the range is at $29.25. Beyond that, long-term support and resistance are at $27.73 and $29.81, respectively.

This underscores the importance of ATOM's recent levels. The token is trading at $27.83, very close to the range low of $27.2. Therefore, aggressive buyers can try to bid on ATOM. Their plan of action is to take profits at the resistance levels of $29.50 and $31.20.

Fundamentals

Cosmos deals in areas of interest to buyers, but needs to break out of this level

Source: ATOM/USDT on TradingView

The RSI creates higher highs, even though price creates lower highs (white dashed line), which is a hidden bearish divergence. Generally, in a downtrend, a bullish divergence will be followed by a retracement, while a hidden bearish divergence indicates a continuation of the downtrend.

CMF is in neutral territory, while CVD has shown some buying pressure in the last few hours. Therefore, these indicators do not seem to be able to reach a consensus. Bearish, neutral or bullish?

Conclusion

The price action over the past week has been range-bound. Price has compressed further over the past two days and bulls must break the $28.56 level to turn the near-term bias into a bullish one. The $27.2-$27.7 area should see demand for ATOM – but if that area is confused by shorts, further declines are likely.