Bitcoin has had an extremely volatile trading week, with our own indicators at Biyond strongly suggesting ahead of time as the moves unfolded.
This week I am going to discuss extensively our Biyond Atlas indicator as it encapsulates the current market moves in BTC almost perfectly right now. Let's dig in.
A few backs Biyond Atlas moved into the Green zone, however, it strangely started to reverse higher as Bitcoin failed to make any traction above the 110,000 to 111,000 area.
Source: Biyond.co
Source: Tradingview.com
Since then Atlas has shifted gear and moved away from the Green and into the White zone, with reading switching from 98.79 to 99.50.
What does this sudden shift mean or imply? It means that any upside rallies are likely to be fake while Atlas is trending higher, and ultimately they will fade out as bearish momentum gathers.
And this is exactly what we have seen. The recent recovery from 103,220 on May 31st faded, and with Atlas trending higher, new lower lows are likely.
Source: Biyond.co
Source: Tradingview.com
To be fair it was also apparent from the price action and technicals as Bitcoin failed to clear above the 107,000 area and was strongly rejected.
So what happens next? The risk while Biyond Atlas trends higher is a new lower low, and possibly even one that far exceeds the recent low seen this week.
What is likely to happen with Atlas, and often does, is a probe towards the 100.00 area, which is the official deciding level for bullish Vs bearish trends.
Source: Biyond.co
Should we see a reversal from this or current levels at Atlas then it is extremely likely the uptrend proceeds, with 120,000 or 130,000 insight.
If not we face the worrying reality of new lows below the 100,000 level in the coming days and weeks, and a possible soft close to Q2.
Therefore, we strongly believe that all eyes should be on Atlas in the coming days for clues if the chopfest is going to continue or if the bull cycle finally starts to fully resume.
