Bitcoin reversed sharply this week setting up the prospect of another week of downside as opposed to the new all-time high many had probably been expecting after Monday's initial explosive upside move.
Today, the very important weekly price close could determine whether we see a potential bearish flip on Bitcoin next week.
Before we get to our own indicators the weekly timeframe for the Demark indicator is going to point to more losses next week if we close under $95,100 today.
Source: Symbolik.com
Additionally, the weekly Demark count points to about 4 more weeks of potential losses at this stage or atleast before a solid buy signal happens.
Back to Vanguard, and the 3-day time frame has remained Orange (slightly bearish) during the recent bullish recovery, which was very suspicious and pointed to a fake upside move.
Source: Tradingview.com
Now the weekly time frame is actually starting flip to Orange for the first time since October according to the front-running 2.0 Vanguard you can access on Tradingview.
This is a big deal as it would likely spell the end of range bound trading conditions for Bitcoin and a possible breach of the hard to break $92,000 support.
Source: Tradingview.com
In order to turn Orange it seems that we need a weekly close under 93,500 this week. Therefore this potential Orange close is still up in the air as Bitcoin is still very strong on dips.
Another interesting development this week is Biyond Atlas's move above the 100 level signaling growing bearish momentum.
Source: Biyond.co
I think that Vanguard moving into the very bearish Red zone would be great for Bitcoin correction because it would give BTC ample room to reverse.
Thus helping Bitcoin's potential move into unchartered waters well above the below classic breakout trendline around $108,000.
Source: Tradingview.com
In terms of the Long Vs Short indicator, it has yet to really breakout higher or lower.
This makes sense as the short-term trade is still one of range-bound trading conditions.
But when it does eventually pick a trending direction an enormous move is likely coming.
Source: Biyond.co
The scene is certainly set for a big move in Bitcoin over the next 2-weeks. Our inclination is for downward pressure.
However, the main question for traders remains... will Bitcoin move a reasonable amount lower before Trump comes into office?
Our indicators are currently saying Yes it will.
