Bitcoin has had an impressive rally since June 15th, gaining 25% in just nine days.
However, recent price action suggests it may be time for a pullback.
BTC longs have piled into this rally, and one thing we know about Bitcoin is it doesn’t usually offer free rides for those late to the party.
So a pullback from current levels just above $30,000 makes sense.
Furthermore, the price action on the 8-hour time frame below looks very similar to the April swing high.
Back then, Bitcoin closed above $30,400 on the 8-hour trend line, only to close back below it within the next few candles.
BTC held up a little better this time, but the 4-hour time frame has already broken below $30,400.
We’ll see if the next few 8-hour candles can confirm this.
If so, a pullback into the $28,000 area to flush late BTC longs seems likely.
How the Bitcoin price action develops at $27,000-$28,000 if and when tested will determine where BTC trends in July.
Alternatively, a sustained break above $31,000 would suggest bulls remain in control and expose $32,500.
