Bitcoin has played out as expected, but the real test lies ahead with a potential drop to $53,000. In today’s analysis, we’ll break down the key levels and what to watch for in the days to come. Despite the choppy price action this month, Bitcoin has played out nicely according to plan. Those in our

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.

Bitcoin has finally broken down following reports that the Securities and Exchange Commission (SEC) has sued Binance.

It seemed inevitable that we’d eventually get a $25,000 retest, although I did think we would get one more rally to $28,000 before the selloff.

I was wrong, but it’s time to put that aside because we have a new BTC range to trade.

Despite Bitcoin being sideways for months, the chart has given us several favorable opportunities lately.

One of them occurred after my last blog post on May 31st.

We were looking for shorts following the confirmed deviation above $27,500, and the resistance area I pointed out was between $27,300 and $27,500.

Bitcoin showed its hand today with a break below $27,500.

I’ve written about it a few times as a must-hold level for bulls, given Sunday’s close above it.

As of now, this looks like yet another fakeout/deviation from BTC.

And it isn’t the first time we’ve seen this in May.

Like Bitcoin, Ethereum had a nice rally over the weekend after reclaiming $1,835.

You can see where ETH tested that level as support on the 28th before continuing toward $1,887.

You should be very familiar with these levels if you follow me on Twitter, as I’ve posted them a few times in May.

Bitcoin played out perfectly over the weekend, hitting my $27,800 target I wrote about on Friday.

Given the recent range highs, there was a large cluster of short liquidations there.

A rally toward this area became more likely following Friday’s reclaim of the $26,500 area, which I also wrote about several times last week.

So where to from here now that BTC hit our target?