This week I will be taking a look at how our quant indicators at Biyond are positioned after the recent move lower and the distinct change in short-term price action.
From a traditional charting perspective I have enough evidence to believe the crypto market is heading higher in the next few weeks. But it's always good to align this analysis with our own indicators.
Biyond Vanguard
Starting with Biyond Vanguard, and our 2.0 model on Tradingview is showing that the weekly candle is likely to post another Blue candle, after shifting gears from Green recently.
A shift to Blue is not the end of world for the weekly time frame. Typically, it means "prepare to buy", rather than exit the market.
Source: Tradingview.com
Next week, it will be very important that Bitcoin starts to make traction above the 120,000 area to avoid Blue turning to Orange.
I would expect that Bitcoin would need to move above the 123,000 level in order to trigger Vanguard back into Green.
Biyond Atlas
Biyond Atlas is equally intriguing, as Atlas has been tracking higher this week, which speaks to the growing bearish momentum.
This makes it imperative that Bitcoin starts to move above the 120,000, so this current down move is just a temporary correction rather than the start of a much larger move lower.
Source: Biyond.co
Should Bitcoin start to move higher and Atlas moves in the same direction as price then it would be a good indication that Bitcoin is eventually likely to crash from the 130,000 plus area.
Similar instances of divergence have happened before in previous cycles, and all of these instances have not ended well.
Source: Biyond.co
Again, Biyond Atlas should be moving in the opposite direction to price as it is an inverse indicator. So do keep a close eye on Atlas next week.
Pivot Points
Bitcoin looks set to close the week below it's Weekly Pivot Point, and it should be noted that Bitcoin is still well above the Monthly Pivot Point.
Closing the week below the Weekly Pivot Point typically means we should expect some weakness at the start of the week, as the technicals are not that strong.
Source: Biyond.co
Bitcoin also moved closer to its calculated S1 than the R1 this week, which again suggests we need to be careful, as short-term bears are in control.
Should a sudden bid come in this Sunday, and we close the week above the Weekly Pivot Point, then a different skew should be in play next week.
Putting It All Together
As you can see from the above analysis, Bitcoin is entering the week ahead with a slightly unsure backdrop according to our quant indicators.
The trend is to the upside, and things are not that bad, but some caution is needed.
My feeling is that the market is going higher, but a strong up move may not last that last, and even with a strong pump, we could still revisit current levels in a few weeks time.
