Bitcoin pulled back again on Thursday, slipping below the $35K level and closing the daily candle around $33.6K. This is bearish short-term as it looks like Bitcoin is going to retest support at $30K again.
(July 1, 2021 9:30PM EST)
Short-Term:
Bitcoin continues to consolidate in a tighter trading range. What was once a $10K trading range from $30K - $40K is now $30K - $35K. This typically precedes an impulsive break of the sideways trading. The break could go either way, but the pattern shows lower highs and lower lows on the daily chart. A retest of the $30K level is well within sight over this long holiday weekend in the US.
If Bitcoin can break above the 200 Day EMA and stay above it, then it can target the 50 Day EMA near the $40K level.
However, a drop to $30K would be concerning and a break below $30K would be devastating and possibly trigger another selloff to the low-$20Ks. We've been trading mostly sideways in a $10K range for nearly 2 months now, resembling that of a consolidation or rounded bottoming pattern, which commonly precedes an impulsive move. Over the medium term, I think Bitcoin goes up and to the right by a large margin. In the short-term, we may have one more capitulation spike down ahead of us.
