42.40K stands on the horizon

20 Des 2021

Morning folks,

As BTC shows really weak performance, we suggest it would be better to wait with any long positions by far. One of the reasons is recent reaction on major AB=CD target on 1H chart. The reaction was only minor AB-CD (blue) retracement and not even attempt to form, say, reverse H&S pattern. It makes us think that XOP target is the next one - 42.40K This also should be the big test for the major lows as XOP stands just 50$ above it.

Thus, we suggest that it would be better to wait when XOP will be reached, or until situation will change in some other way and BTC starts to show bullish signs. Currently we do not see it. Breaking of 42K lows will be bad thing suggesting much deeper drop on higher time frames. To keep bullish context BTC has to stay above this low.