ATOM Consolidates as Bitcoin Takes Driving Seat, Finds Support at $4.20

The altcoin market took a backseat on Thursday as crypto majors bitcoin and ether attempted to rally to new highs.

As billions of dollars worth of liquidity flowed into shorting bitcoin on the brink of record highs, altcoins like ATOM consolidated, finding support at the $4.20 level.

Typically when bitcoin rallies altcoin price action is muted and the inverse is true when bitcoin consolidates, so ATOM could be primed for a rally once bitcoin begins to cool off.

Technical analysis

ATOM-USD traded within a range of $4.09 to $4.26 during the 24-hour period from 2 July 16:00 to 3 July 15:00, representing a 4% swing.Key support established at $4.16-$4.17 with high volume buying emerging at the $4.20 level during the 13:00 hour session on July 3rd.Despite reaching a peak of $4.26 during the 07:00 hour, ATOM failed to sustain momentum above the $4.25 resistance level.In the last 60 minutes from 3 July 14:24 to 15:23, ATOM-USD declined from $4.24 to $4.21, representing a 0.73% decrease.Sharp selloff occurred between 15:03-15:07, dropping to a session low of $4.19, before staging a recovery.Final 15 minutes showed stabilization with price consolidation around $4.21, suggesting potential short-term equilibrium.

CD20 Index Surges 2% Before Profit-Taking Emerges

The CD20 demonstrated significant volatility in the last 24 hours from 2 July 16:00 to 3 July 15:00, reaching a peak of $1,811.11 before retracing to $1,793.55, with an overall range of $37.27 (2%). After establishing support around $1,780 during early hours, the index staged an impressive rally through the morning session of 3 July, gaining momentum particularly between 09:00-14:00 before profit-taking emerged in the final hour.Read MoreCoinDesk: Bitcoin, Ethereum, Crypto News and Price Data[#item_full_content]