In the world of cryptocurrency, recent developments have sparked renewed optimism among traders, particularly for Cosmos (ATOM) and Bitcoin (BTC). On April 4, 2025, eToro announced it would add Cosmos and Polkadot to its staking options, a move that has already begun to positively influence ATOM's price. This announcement comes on the heels of a significant bounce for ATOM, which has prevented a breakdown and surged past crucial resistance levels.
ATOM has created a double bottom pattern between September 2024 and March 2025, a formation typically indicative of a bullish trend reversal. This pattern emerged at a critical price level of $4, below which a breakdown could lead to lows not seen since 2020. Since the announcement from eToro, ATOM's price has been on the rise, nearing confirmation of its bullish trend reversal.
On April 3, ATOM formed a bullish engulfing candlestick, reclaiming the $4.30 support area, which further solidified its bullish outlook. Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bullish divergences, supporting the possibility of a trend reversal. Analysts believe that if ATOM breaks out from the neckline of an inverse head and shoulders pattern at $5, it could rise to the next resistance level around $6.30, with further targets set between $6.50 and $8.
Meanwhile, Bitcoin traders are also bracing for a potential rally toward the $100,000 mark, as early signs indicate a decoupling from traditional market influences, particularly the US stock market and gold. Despite a shaky start following US President Donald Trump’s global tariff announcement on April 2, which initially saw Bitcoin drop over 3% to around $82,500, the cryptocurrency rebounded approximately 4.5%, crossing the $84,700 threshold.
This resilience is part of a broader narrative where Bitcoin appears to be following gold, which recently hit a record price of $3,167 on April 3 before slipping 4.8%. The correlation between gold and Bitcoin is reminiscent of trends observed in late 2018 through mid-2019 when gold began to rise significantly, leading to a massive Bitcoin rally shortly thereafter.
Market analysts, including MacroScope, have noted that a reclaim of the $100,000 level for Bitcoin would signify a transition of market leadership from gold to Bitcoin. The founder of Alpine Fox, Mike Alfred, has also expressed optimism, suggesting that Bitcoin could potentially grow tenfold compared to gold based on historical data.
However, not all indicators are positive. Some analysts warn of a potential drop for Bitcoin towards the $65,000 mark, citing a bearish fractal pattern in the Bitcoin-to-gold (BTC/XAU) ratio. This pattern, previously observed in 2021, suggests that Bitcoin could face significant resistance if it fails to maintain its current support levels.
Should this fractal repeat itself, Bitcoin’s initial downside target could rest around the 50-2W exponential moving average (EMA) at approximately $65,000. Additional sell-offs could potentially push the price below $20,000, aligning with the 200-2W EMA. This scenario raises concerns for traders, especially given the current macroeconomic climate.
Adding to the uncertainty, Federal Reserve Chair Jerome Powell recently pushed back against expectations for near-term interest rate cuts, citing uneven progress on inflation. His comments have contributed to a cautious outlook, as risk assets like Bitcoin typically underperform during economic downturns.
Despite these challenges, bond traders remain optimistic, with many anticipating three consecutive rate cuts before the Fed’s September meeting. This potential easing of monetary policy could provide a supportive backdrop for Bitcoin and other cryptocurrencies.
As the cryptocurrency market continues to evolve, the interplay between technical patterns, macroeconomic factors, and market sentiment will play a crucial role in shaping the future of assets like ATOM and Bitcoin. The recent developments surrounding ATOM and Bitcoin illustrate the dynamic nature of the cryptocurrency landscape, where opportunities and challenges coexist.
In summary, both ATOM and Bitcoin are at pivotal moments in their respective market journeys. ATOM's bullish patterns and Bitcoin's potential rally toward $100,000 have captured the attention of traders and investors alike. With the recent news from eToro and the ongoing developments in the broader economic landscape, these cryptocurrencies may well be poised for significant movements in the near future.
