- Cosmos (ATOM) and Avalanche (AVAX) are maintaining their double bottom technical formation despite recent selling pressure that has extended their 90-day correction phase.
- Bitcoin dominance has rebounded from 61.34% to 62.12% and is approaching a key resistance level that will determine the direction of altcoin markets.
- If Bitcoin dominance gets rejected at resistance, capital rotation could fuel a recovery for ATOM and AVAX, while a breakout above resistance could invalidate their double bottom patterns.
- Both tokens are currently holding at crucial support levels, with their next moves largely dependent on Bitcoin dominance and broader market sentiment in the coming days.
Date: Sun, March 30, 2025 | 08:48 AM GMT
The cryptocurrency market is once again facing selling pressure, wiping out the recovery gains made earlier this week. Ethereum (ETH) has plunged more than 8% over the past two days, slipping below $1,850 after briefly touching the $2,000 mark. This decline has triggered a broader sell-off in altcoins, including Cosmos (ATOM) and Avalanche (AVAX), both of which are trading in the red today and extending their 90-day correction phase.
However, despite the bearish sentiment, their technical setups remain intact, and the next move will largely depend on Bitcoin’s dominance in the market.
Double Bottom Formation Still Holding Strong
Even with the recent downturn, ATOM and AVAX have maintained their double bottom formation—a well-known technical pattern that often signals a potential trend reversal. Earlier this week, both tokens managed to bounce off their key support levels, hinting at a possible recovery. However, the broader market correction has dragged them back near these crucial support areas.
A major factor influencing their price action is Bitcoin dominance (BTC.D), which dictates capital flow within the crypto market. Whether ATOM and AVAX hold their support levels or experience another leg down will largely depend on BTC dominance’s movement.
What to Expect Next?
BTC dominance has rebounded from both the 50-day moving average (MA) and the rising wedge support, climbing from 61.34% to 62.12%. As it approaches a key resistance level, there are two possible scenarios:
1. Rejection from Resistance → Bullish for Altcoins
If BTC dominance fails to break its resistance trendline, we could see a rotation of capital back into altcoins, leading to a rebound for ATOM and AVAX. A rejection at this level would indicate a shift in market sentiment, fueling a recovery across the altcoin sector.
2. Breakout Above Resistance → More Selling Pressure
If BTC dominance breaks above resistance, altcoins may face another round of sell-offs. This could push ATOM and AVAX further down, invalidating the double bottom pattern and extending the bearish trend.
The next few days will be critical in determining the direction of the altcoin market. Traders should keep a close eye on BTC dominance for signs of a potential shift in market momentum.
Final Thoughts
Cosmos (ATOM) and Avalanche (AVAX) are holding firm at key support levels, but their fate remains tied to Bitcoin dominance. If BTC.D gets rejected at resistance, altcoins could see a strong bounce. However, a breakout could mean more downside pressure.
Traders should closely monitor BTC dominance and market sentiment to navigate the next phase of the market cycle.
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