This week I am going to be going through Biyond's various indicators in order to assess the directional path for Bitcoin in the coming days.
Certainly, the flush-out under $60,000 and subsequent sharp rebound from the $59,000 area has been fascinating to watch this week.
It may allude to the fact that dip-buying is the name of the game in 2024 and a major pre-election price bottom could have formed this week, and now higher prices are ahead.
Source: Tradingview.com
My own opinion is that a break above $64,000 will set about the next major up move. Much below $61,900 and things look dire technically for Bitcoin. But what are our indicators saying?
Starting with Biyond Vanguard, and how things change! The rebound has meant nearly all time frames are Green, further signalling more gains ahead.
Source: Biyond.co
The big question is what will it take for the weekly time frame to flip to Green, signalling massive weekly gains ahead. My best guess is a move above $68,000 to $69,000.
If Vanguard turns Green I would expect nothing less than $90,000. Here's hoping anyway.
On to Biyond Atlas and if you are familiar with this indicator and how to use Atlas then the clues about a rebound this week were all there.
Source: Biyond.co
Atlas has remained under 100 mark (bullish) during the entire down move to $59,000, showing that bear momentum was indeed weak.
So far the move back towards $64,000 has not moved the needle for this indicator, providing yet more of a clue that the major trending moves have yet to happen.
When the price trends higher and Atlas trends lower, then we know bullish momentum is strong. Watch for that on a break of $64,000.
Source: Biyond.co
The Long Vs Short ratio has been a tricky one this week to judge.
Conventional wisdom suggests trading it when it starts to turn. How to judge when the indicator is turning? that's a very good question.
Our own quant analysts believe when the Long Vs Short ratio is close to historical peaks or a trough you look to counter-trade it.
I'm not sure I agree as the indicator has yet to really turn from a read of 2:1 in favour of Longs.
I can only assume that the Bitcoin move will really start to accentuate once this indicator starts to move convincingly lower, being an inverse price relationship indicator.
Source: Tradingview.com
Overall, and based on what our indicators are saying (in my interpretation), the meat of the move has yet to take place in terms of a major trending move.
Our indicators look good for a minimum price retrace next week, and we could (dare I say it) be on the cusp of a major upside price breakout after weeks of hoping and waiting.
