The altcoin market lost some steam on Thursday as major cryptocurrencies like bitcoin and ether pushed higher in an attempt to set fresh record highs.

As bitcoin approached historic levels, billions of dollars poured into short positions, leaving altcoins such as ATOM in consolidation mode. ATOM managed to hold support around the $4.20 mark.

Historically, when bitcoin rallies, altcoin price action often slows, with more significant moves occurring when bitcoin enters a consolidation phase. This pattern suggests ATOM could be positioned for a rebound once bitcoin’s momentum starts to ease.

Technical Analysis

• Between 2 July at 16:00 and 3 July at 15:00, ATOM-USD fluctuated between $4.09 and $4.26, marking a 4% trading range.
• Strong support was observed in the $4.16–$4.17 area, with notable buying volume appearing at the $4.20 level during the 13:00 hour on 3 July.
• Despite hitting $4.26 around 07:00, ATOM struggled to maintain prices above resistance at $4.25.
• In the hour from 14:24 to 15:23 on 3 July, ATOM-USD dipped from $4.24 to $4.21, a 0.73% decline.
• A sharp sell-off occurred between 15:03 and 15:07, sending prices down to a session low of $4.19, before staging a modest recovery.
• In the final 15 minutes of trading, ATOM stabilized near $4.21, indicating potential short-term equilibrium.

CD20 Index Climbs 2% Before Pullback

• The CD20 index displayed heightened volatility over the same 24-hour period, reaching a high of $1,811.11 before retreating to $1,793.55, a total swing of $37.27 (2%).
• After finding support near $1,780 in the early hours, the index surged through the morning of 3 July, gaining significant momentum between 09:00 and 14:00. However, profit-taking emerged in the final trading hour, trimming gains.