Cycle Trading: Bitcoin Update
|Bitcoin delivered a buy signal on Tuesday.
Bitcoin has been in a daily uptrend characterized by highs forming above the upper daily cycle band and lows forming above the lower daily cycle band. Last week Bitcoin dropped into what appears to be a cycle low. Bitcoin printed its lowest point on Friday as it formed a bullish reversal.
Bitcoin formed a daily swing low on Tuesday. Bitcoin did not close below the lower daily cycle band on Friday as it printed its cycle low so it remains in its daily uptrend. The strategy in a daily uptrend is to buy the swing low when it forms above the lower daily cycle band. (Of course this trade is not for the "faint-of-heart" since the stop would be below Friday's low, which on the Bitcoin ETF GBTC is $1205.00 away.) A close back above the upper daily cycle band will renew the daily uptrend.
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