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?
Given today’s US holiday, we can expect a ranging market between $27,500 and $28,250.
I’m not surprised to see BTC pulling back today, considering the aggressiveness of the weekend rally.
The pullback will remain constructive as long as Bitcoin can stay above $27,500 on a 4-hour and daily closing basis.
A sustained break below that area would confirm a deviation and expose the CME gap at $26,900.
If BTC bulls can keep the price above the $27,500 area, then a move back to $28,250 could be in the cards.
Ultimately, the direction over the next few days hinges on the $27,500 handle.