Bitcoin is set for possibly it's most explosive week ever if Donald Trump announces his strategic Bitcoin reserve on the 1st day of his taking over as U.S. President.
Where there is reward there is also bound to be risk. And this risk comes in the shape of Trump not coming out with very specific crypto plans off the bat on day one.
For sure this scenario could cause a crypto meltdown.
But as things stand the market is braced for good news and the charts are also showing the potential for a super cycle in Bitcoin if $110,000 cracks.
Source: Tradingview.com
In terms of our indicators at Biyond we are seeing a mixed bag to be honest moving into the Monday open.
The most compelling evidence we have of a major breakout next week is the fact that Vanguard Weekly is set to turn Green next week.
This is due to our front running 2.0 Vanguard showing that the big shift is going to take place as things stand right now.
Source: Tradingview.com
If that is the case then past performance indicates that indeed we should expect a new all -time high next week.
The issue or the problem we have at Biyond is that the 3-day Vanguard has been Orange all the way through this year and will still remain Orange unless we close above $105,000 today.
Call it negative price divergence if you will, but previous instances of the 3-day Vanguard being stubborn and remaining in Orange while the market moves higher has always indicated an incoming bearish reversal.
Source: Tradingview.com
Vanguard 3-day still has scope to flip to Green as the next 3-day close is actually tonite. This would likely cause a clean sweep of Green buy signals across every Vanguard time frame.
Biyond Atlas has been trucking higher during the move up this week, also highlighting bearish divergence.
Source: Biyond.co
I will say from a personal interpretation, Atlas could be correcting higher (up means down and down means up for Atlas) leaving plenty of scope for the next big move higher in BTC.
In summary, Vanguard Weekly being Green would be a huge reason to get BTC Long exposure next week. However, the other bearish elements mentioned if not overridden could suggest a bumpy ride.
Source: Investopedia.com
My own take is that in economics I was taught that "The Opportunity Cost is the Opportunity Missed".
So despite a poor entry point right now, not getting atleast partial exposure to BTC would fit that statement well.
