Cycle Trading

Summary

• BTC had been consolidating below the 70,000 resistance level.
• BTC broke above 70,000 on Sunday.
• BTC also reclaimed the 50 day moving average and closed above the upper daily cycle band.
• Closing above the upper daily cycle band ends the daily downtrend and begins a new daily uptrend.
• The breakout also signals that the intermediate cycle low has likely been set.

BTC had been consolidating below the 70,000 resistance level — until Sunday. BTC closed above the 70,000 level on Sunday and also reclaimed the 50 day moving average. BTC also closed above the upper daily cycle band. Closing above the upper daily cycle band ends the daily downtrend and begins a new daily uptrend. It also signals that the intermediate cycle low has likely been set.

BTC is in the process of breaking out to a new daily cycle high on Monday. The new high on day 20 shifts the odds toward a right translated daily cycle formation — a bullish structure that often leads to stronger advances during the remainder of the cycle.

Cycle Alignment

Daily cycle has turned bullish while the larger cycle advance begins to build.