Bitcoin has reversed sharply this week after appearing to run out of buying interest above 110,000 level and failing to make a new all-time high.
This week I will take 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.
Source: Tradingview.com
Starting with Biyond Vanguard and our 2.0 model on Tradingview is showing that the weekly has changed from Green to Blue.
A shift to Blue is not the "end of world" for the weekly time frame in the grand scheme of things, but it simply means "prepare to buy", rather than exit the market.
However, it is very disappointing, as the price has basically returned to where the first Green weekly Vanguard candle became official, around the 104,000 level.
Source: Tradingview.com
Next week it will be super important Bitcoin starts to make traction above this area to avoid Blue turning to Orange.
Biyond Atlas is equally intriguing, as Atlas has been tracking higher this week and has actually moved a few points out of the Green zone.
Source: Biyond.co
This speaks to the growing bearish momentum, making it imperative that Bitcoin starts to turn higher soon so this down move remains a correction and not the start of a much larger bear move.
Historically, if that happens we see a trend test of the 100.00 area, which is basically the Bull Vs Bear marker for Atlas.
Source: Biyond.co
Our new Biyond Challenger indicator is showing that the 12-hour time frame has issued a perfected Buy signal.
Therefore, it is highly likely we will see the bounce in BTC remain at the start of next week.
Whether it lasts or not is the important part.
Source: Biyond.co
Worryingly, Challenger is saying by the end of June a full-on Weekly sell signal is likely.
In reality, Bitcoin probably needs to make strides above the 121,000 level to negate that outcome.
Source: Tradingview.com
My own take is that if Bitcoin can hold above the 107,000 level next week then we are probably going to see a trend- defining moment at 110,000 again.
If that doesn't happen and weakness persists under 107,000 then the clear risk here is that Bitcoin is going to sink back towards the 94-95,000 level again.
