CycleTrading: Potential Bitcoin Buy Signal
|Prior to February, Bitcoin had been in a daily downtrend that was characterized by highs forming below the upper daily cycle band and lows forming below the lower daily cycle band. That changed in February.
Bitcoin closed above the upper daily cycle band in early February. Closing above the upper daily cycle band ended the daily downtrend and began a daily uptrend. Its daily uptrend has been characterized by lows forming above the lower daily cycle band and highs forming above the upper daily cycle band.
The last 4 daily cycle lows occurred between day 23 and day 36. Thursday was the lowest point since peaking on day 31. Thursday was day 36 which places Bitcoin in line with the previous 4 daily cycle lows. And Bitcoin closed above the lower daily cycle band. If Bitcoin can form a swing low above the lower daily cycle band then Bitcoin will remain in its daily uptrend and trigger a cycle band buy signal.
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