This week has been a strange one for Bitcoin in that the CPI volatility many expected did not catch alight, and Bitcoin is still remains on shaky group.
Sure, it's nice that BTC is recovering, but certainly not to the extent that many had envisioned around these solid dip-buying levels.
Source: Tradingview.com
The Crypto Total Market Cap chart still shows the market is trapped in the do-or-die zone, so certainly this remains a must-watch area as per the attached chart for guidance and must-hold levels next week
But what about our indicators? Are there any great clues? It's probably a good time to start with Biyond Atlas.
As we all know, the Bitcoin Atlas Index has an inverse relationship with price.
It incorporates many factors to assess capital flows, volatility, demand, and supply within the blockchain, helping to gauge market sentiment and identify potential overbought or oversold conditions.
Source: Biyond.co
Currently, the indicator is in the red region, which signals oversold conditions based on sentiment and money flows but does not necessarily indicate a price bottom.
Instead, it represents a danger zone, highlighting the risk of further downside volatility. If the index is declining from a peak but remains in the red zone, this suggests that negative sentiment is easing yet still dominant.
Source: Biyond.co
On March 1st, the index printed 102.17, indicating that we are likely near a market bottom.
Given this signal and currently we are around 101.87, we believe the ongoing trading environment presents a strong opportunity for long-term Bitcoin accumulation.
In the here and now the index is moving downward, indicating that this price level presents a strong accumulation opportunity for Bitcoin from a contrarian perspective.
It's very well worth noting that the index values rarely exceed 102 or drops below 98.5. When it does, it signals extreme market conditions. This is where we are today.
Over to Vanguard and this week Vanguard Weekly turned from red to orange.
When Vanguard Weekly is in red, it signals caution, advising traders to stay out of the market.
Source: Tradingview.com
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As things stand, our Biyond Vanguard 2.0 model available on Tradingview shows that Bitcoin is going to turn from Red to Orange this week.
Still, being orange is not a buy signal, so we believe if you are eager to buy then you must stay patient.
Orange has a bearish inclination, but it is certainly a footstep to Sentiment changing for the better.
Source: Tradingview.com
As we all know from the great signal back in November, when Vanguard turned green, indicated a favorable environment for market participation.
Overall, based on what we are seeing at Biyond, Bitcoin has a good shot of recovering next week.
As always our indicators and my Biyond Daily newsletter and webinar will strive to keep you posted as things evolve.
