Bitcoin has failed to come to life this week, despite many technical buy signals being firmly in place, plus our own indicators at Biyond have remained resoundingly bullish.
Could it be a bear trap being set by the market makers or perhaps a pending upside move is just too obvious right now?
Now is probably a good time to do a health check on Bitcoin and Ethereum according to our own indicators.
Source: Biyond.co
Very little has changed in terms of the Long Vs Short ratio for both Bitcoin and Ethereum.
Traders have held a Short bias towards BTC and ETH traders have a far reduced Long bias compared to the historical norm.
Source: Biyond.co
A risk here would be a reset in this metric as the short bias held in place for an unusual amount of time. In this scenario, crypto could face a nasty shakeout before finally breaking higher.
Our Biyond Atlas indicator has once again moved lower for both Bitcoin and Ethereum this week.
Source: Biyond.co
A steady drop has been the order of the day. Both BTC and ETH not rallying while Atlas moves lower has been an odd phenomenon this week.
Source: Biyond.co
Perhaps the strangest occurrence has been Bitcoin and Ethereum failing to rally despite Vanguard flashing buy signals for both on the Weekly time frame.
Could this be some type of odd bullish divergence that is building and waiting to play out.
It's difficult to imagine Vanguard retreating and returning back to bear mode after waiting so long to generate it's first buy signal in many months, which came last week.
Source: Tradingview.com
Overall, it's been a pretty odd week for crypto. I'm sure the market needed to pause somewhat after posting big gains over recent weeks. And just maybe this is the calm before the storm.
Our indicators still remain very bullish. Hopefully, Bitcoin can do what we think it is going to do next week, and head towards 110,000 and then 120,000, just for starters.
