BTC broke below the day 45 low on Tuesday to extend its daily cycle decline. BTC printed its lowest point on Wednesday, day 50, placing it very deep in its timing band for a DCL. The bullish reversal that followed suggests bitcoin may have finally found its daily cycle low.
However, bitcoin has not yet formed a swing low. The next step is for bitcoin to form a swing low and close above the 10 day MA. That would signal that the DCL has been established and a new daily cycle is underway. Even with a DCL signal, bitcoin would remain in a daily downtrend until it closes above the upper daily cycle band.
The developing reversal is encouraging, but bitcoin still needs to provide the evidence that its daily cycle has turned higher.
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