Sit on the hands

Morning folks,

As we've suggested BTC slipped, but not enough as we've suggested action to 26K area. Although it seems nice rebound right now - we have no clear bullish context: no divergences and no clear bullish patterns. In fact "LH-LL" tendency is still valid. This makes us think that it is not proper moment for speculative buying on daily chart. We need to get clear reversal pattern first. Especially with CPI ahead that is expected to be dollar supportive.

On 1H chart - in fact market repeats the same pattern. H&S, then run to XOP (1.618 extension)+78.6 Fib resistance and turns down. Now it repeats it again. It doesn't let us to treat this context as bullish by far.

For bearish trading, theoretically you could try to go short, but I have to warned you - this time we do not have "222" Sell as last time. All that we have is the hope on strong CPI, and repeated pattern here. Thus, your bet mostly will be on CPI numbers...

Personally I prefer to wait. Currently I do not see very attractive setups for trading.