Will there be an output from the downstream channel. $ATOM
The question is open. Will $BTC allow it to be done. Small correction in Bitcoin corrected #altcoins by 7-15%
1. Formation of a descending channel:
The chart clearly shows a downtrend shaped like a channel, with declining highs and lows. This indicates that bears have dominated on a large timeframe (monthly).
2. Current price level and interaction with channel boundaries:
The price has now approached the upper boundary of the descending channel. Exiting the channel is usually confirmed not only by crossing the trend/channel line, but also by a confirmed candle close (in this case, a monthly close) above it. If the asset can hold above the upper boundary of the channel for one or two monthly closes, this would signal a potential trend reversal or at least a significant weakening of the downward momentum.
3. Volumes and RSI:
In the provided image, you can notice increased volumes at certain points. A volume increase during the breakout of the upper channel boundary may serve as confirmation of the buyers’ strength. If the volumes remain low, the breakout could turn out to be false.
4. Resistance and support levels outside the channel:
If a breakout above the channel occurs, the next resistance levels are psychological numbers (for example, $10–12) and previous local highs. Sellers may become active at these levels, so it’s crucial to watch if the price can remain above the breached channel boundary.
5. Possible scenarios:
Bullish scenario: The price confidently breaks through the upper line of the channel, consolidating above it for 1–2 monthly candles, with rising RSI above 50 and increasing volumes. This could indicate a shift in the long-term trend toward an uptrend or at least forming a sideways range at higher levels.
Bearish scenario: The price touches the upper boundary but bounces off it downwards, accompanied by low buying volumes and falling RSI. In this case, the movement within the descending channel continues, and the trend remains bearish.
