Cycle Trading

Bitcoin broke below the previous DCL on Sunday. Breaking below the previous daily cycle low forms a failed daily cycle and typically signals the intermediate cycle decline. I do not think that Bitcoin is beginning and intermediate cycle decline — which I plan to discuss in the Mid-Week Report.

Bitcoin did not deliver any bearish follow through. Instead, it rallied on Monday. The previous DCL was stretched at 59 days. So it is possible to see a shortened daily cycle form here, which would help to balance out the cycle counts. Bitcoin formed a swing low and closed above both the 10 day MA and the 50 day MA on Monday, springing the bear trap. Closing above both the 50 day MA and the 10 day MA will have us label day 17 as an early DCL.