Bitcoin had another confusing week for traders after falling under the $98,000 level and then recovering back towards the $106,000 before giving back it's gains on the Trump Tariff news.
The choppy trading conditions may last until we get the next extremely bullish or bearish catalyst for crypto.
Source: Twitter.com
As I mentioned in Coindesk's newsletter this week Bitcoin really needs to start cementing itself above the $107,300 level for a clear bullish trend continuation signal.
While a close under the $99,000 level could signal the start of a downfall towards the January low.
Source: Symbolik.com
Our own indicators have a slightly bearish tilt at the time of writing, and we do have some important developments happening with Biyond Atlas right now.
Biyond Atlas is trending higher (remember this model has an inverse relationship with price, so up is a bearish signal) and moving closer to the Red zone.
Source: Biyond.co
Typically, the downside starts to accelerate once Atlas breaks into inside the Red zone.
This could suggest we may see another downside attempt towards the yearly low.
Being in a bullish market, our focus is on this indicator being Oversold and moving into the Grey zone. But it doesn't hurt to know that bear pressure is mounting.
Many market bottoms have formed once this indicator becomes too far extended. An example is the 2020 bull market below.
Source: Biyond.co
Ofcourse the ideal scenario is Atlas trending down and back into the Green zone.
Biyond Vanguard looks set to transition from Green to Blue this week.
This in itself suggests traders should be prepared to buy dips. Atleast for those with risk tolerance.
Source: Biyond.co
Unless Bitcoin becomes a great bargain towards $80,000 again, probably the safest approach is to wait for Vanguard to turn Green across the higher time frames and Atlas to move back into the Green zone like it did late last year.
The Long Vs Short ratio shows that Global Binance accounts have moved back to having a Long bias prior to the Tariff news dump.
Source: Biyond.co
Next week will be crucial for positioning. Especially retail attempts to sell the Trump Tariff news or remain Longs or increase Longs.
As always, we monitor this indicator closely as the market typically does the opposite when a strong retail bias forms.
Overall, we remain bullish on Bitcoin and consider having long exposure at current levels rational and responsible as $150,000 and $200,000 are indicated as probable targets on the charts.
