Cycle Trading

Bitcoin broke bearishly over the weekend.

Bitcoin closed below the 50 day MA on Sunday. Bitcoin delivered bearish follow through early on Monday by dropping and additional $6500 — then Bitcoin caught a bid. Bitcoin has rallied off the lows, breaking back above the 50 day MA, and currently up $3561 .

Monday is day 21, placing Bitcoin in the early part of its timing band for a DCL. Since the previous DCL was stretched at 48 days, it is possible to see a shortened daily cycle here, which would help to balance out the cycle counts. Bitcoin is currently in a daily uptrend. If Bitcoin forms a swing low and closes back above the 10 day MA, that will indicate a continuation of its daily uptrend and signal a cycle band buy signal — in which we would then label day 21 as an early DCL.