Bitcoin is on course to eke out a mildly positive trading week, but to be very honest the move higher still lacks conviction and complete technical confirmation.
With that said, this week I am going to focus on the two most compelling cases that a wider recovery may be on its way, according to our very own indicators.
Source: Biyond.co
Starting with Biyond Atlas, and this indicator has dropped by close to 30 points this week and is now getting closer to moving out of the Red region(bearish zone).
The current reading of 100.85 is a far cry from the lofty 102.17 high reading (extremely bearish) seen just a few weeks ago.
Source: Biyond.co
Biyond Atlas now needs to move under 100.50 to get out of the Red region, and into the Grey (neutral zone) region.
Judging by the daily drops and sometimes double-digit drops, this move may not take long to happen.
Source: Biyond.co
Do note that a strong bullish bias in Atlas happens if a move under 100.00 level happens and a major buy conviction occurs once we see a move into the Green region (99.00).
While Bitcoin is some ways away from moving into the Green just yet it is encouraging to see that Atlas is moving in the right direction and still has considerable scope left before it becomes Overbought on any time frame.
Another positive according to our indicators is the Long Vs Short ratio, which currently shows a major Short skew.
Source: Biyond.co
Typically, Global Binance traders tend to be on the wrong side of the trade, so the retail conviction trade has a negative correlation with Bitcoin's price.
As well as leaning against the prevailing trend the herd also tends to have poor market timing.
With that said the current Short bias bodes well for a Short squeeze.
Should we continue to see a major Short bias and Biyond Atlas dropping it would certainly provide a compelling case that the current recovery in Bitcoin has legs.
Source: Biyond.co
Ethereum also is benefiting from decreasing bearish momentum according to Biyond Atlas, which is another good sign.
In regard to the Long Vs Short ratio and ETH, it is a slightly different story for Ethereum traders and I will explain why.
Source: Biyond.co
Rarely does the ETH/USD pair enjoy a wholesale short bias like BTC/USD. Mostly, traders are trying to long this pair for a variety of reasons.
However, the Long Vs Short ratio has declined to around 2.5 to 1, which is a far cry from the 5 to 1 Long bias seen just a few weeks ago.
This is a good sign and a further indication we could soon see a widespread crypto recovery if bearish positioning is now increasing from the retail crowd.
