3 reasons for Atrium to fall below $ 3,000 by the end of 2021

Atrium, like Bitcoin and other digital currencies, has been relatively quiet these days. However, fundamental and technical factors indicate that atrium prices are more likely to fall deep than to jump.

To Report The Atrium price, which hit a record high of $ 4,867 in early November, fell about 20 percent just a month later as traders felt a sense of profit and exit.

Currently, as Atrium maintains the $ 4,000 level as a key support, there is a risk of increasing sales pressure on a number of technical and fundamental indicators.

A model that could lower the price of Atrium to $ 2,800

At first it seems that the atrium is breaking the upward angle pattern. An uptrend, despite its name, is a downtrend and occurs when the price moves upwards in the range between two uptrends, but convergent.

Simply put, as the atrium approaches the apex of the uptrend pattern, the probability of the stock breaking and falling below the trend line increases; A move that many analysts see as a sign of a deeper fall in prices. As this trend line is broken, the price will fall from the breaking point to the maximum height of the corner pattern.

Also read: Familiarity with 10 Technical Analysis Chart Patterns That Every Trader Should Know

As a result, it can be said that the Atrium Rising Pattern is targeting around $ 2,800, which is roughly on par with the 50-week moving average (EMA).

Descending divergence on the chart

The downtrend in the Atrium market has emerged despite its ability to withstand the massive sales pressure that has been felt in other parts of the digital currency market in recent weeks.

Bitcoin, for example, fell 30 percent a month after hitting a record high of $ 69,000 in early November, far more than Atrium fell in the same period. This has led many Atrium analysts to see it as a tool to reduce the risk of Bitcoin falling. Atrium’s value against bitcoin recently reached its highest level in three years.

Of course, the fact that the recent rise in Atrium prices has coincided with a decrease in its weekly relative strength index (RSI) cannot be ignored; This indicates an increase in divergence between price and acceleration.

In addition, the recent correction in the price of Atrium caused the relative strength index to fall below the level of 70, which is usually considered by traders as a sign for sale.

US Federal Reserve decisions and their impact on prices

On the eve of the two-day meeting of the US Federal Reserve, which begins on December 14 (December 23), there are signs of further decline in the Atrium market. The US Federal Reserve, meanwhile, plans to speed up the slowdown in its $ 120 billion monthly asset purchase program to gain enough flexibility to raise bank interest rates next year.

Last month, the Federal Reserve announced that it would cut bond purchases at a rate of $ 15 billion a month, meaning that the stimulus would finally be shut down by June 2022 (June 1401). However, recent reports on the US economic situation, which together show an increase in demand for labor and a continuing rise in inflationary pressures, have led US Federal Reserve officials to conclude that they should reduce interest rates a few months earlier.

Predictions about the future of the market have also been somewhat more balanced, and a recent Financial Times poll of 48 economists shows that they expect the US Federal Reserve to end its stimulus activity by March 2022. Most respondents agree with the interest rate hike in the second quarter of next year.

The implementation of this monetary policy since March 2020, which eventually led to an increase in the supply of dollars, has contributed to the growth of Atrium prices by 3.330%. That is why some analysts believe that the seriousness of the issue of eliminating this monetary policy will interrupt the recent uptrend if it does not change the overall bullish outlook for the digital currency market.

Market participants expect the Federal Reserve to update its policy statement and summary of economic plans this week. Doing so will encourage more central bank officials to adjust the pace of supply of government stimulus to raise interest rates sooner than expected in the face of rising inflation.