Cycle Trading

Summary

Early DCL confirmation favors continuation of the daily uptrend

BTC printed a potential early DCL on day 21

Price has broken bullishly out of consolidation

BTC is testing the 95,000 level

A sustained move above 95,000 would end the pattern of lower highs and lower lows

As discussed on Monday, BTC printed its lowest point on day 21, which is early to expect a daily cycle low (DCL) to form. BTC had been consolidating between the rising 10 day moving average and the 50 day moving average — until Tuesday.

BTC is now in the process of breaking bullishly out of that consolidation. BTC is currently up 3.50% on the day, and if it were to close at current levels, it would be closing back above the 10 day moving average. That would allow us to label day 21 as the DCL.

BTC is now running into resistance near the 95,000 level. A bullish break above 95,000 would end the pattern of lower highs and lower lows and begin a new pattern of higher highs and higher lows — signaling a meaningful shift in market structure.

BTC remains in a daily uptrend. Confirming day 21 as the DCL would indicate a continuation of that daily uptrend and signal a cycle band buy signal.