The Bitcoin Euro (BTC/EUR) price has been trading within a 10K euro range between 56,000 and 66,000 euros on the daily chart. As the price reached the lower boundary of this pattern, notable up and down movements inside this range follow a straight pattern. This analysis will assess the current indicators and their implications for the short-term bullish sentiment.
Technical Analysis:
- Price Action: The BTC/EUR price is currently trading near the lower boundary of the 10,000-euro range, indicating a potential rebound. The price action inside this range is relatively straight, suggesting a consolidation phase.
- Relative Strength Index (RSI): The RSI is currently in an overbought condition, which indicates a potential for a short-term correction or consolidation. However, the RSI is not diverging from the price, suggesting that the bullish sentiment is still intact.
- Moving Average Convergence Divergence (MACD): The MACD is in the red zone. However, it is starting to invert from a lower momentum, which indicates a potential bullish rebound. This inversion suggests that the bearish momentum is losing steam and a bullish reversal is imminent.
- Trendline: The lower trendline of the 10,000-euro range was touched for the third time, validating once again the validity of the price trading range pattern. This touch reinforces the importance of this trendline as a support level, increasing the likelihood of a bullish rebound.
Conclusion:
Based on the current indicators, both the RSI and MACD support a short-term bullish sentiment. The price action, trendline, and indicators suggest that a rebound from the lower trendline is likely. This could lead to an increase in buying activity, potentially pushing the BTC/EUR price higher within the 10,000-euro range. However, it is essential to monitor the RSI and MACD for any signs of a potential reversal or divergence from the price.
In the weekly chart, it is noticeable that the sell pressure is still intact, which could signify that this is a short-term bullish momentum towards the upper boundary. It may be difficult for this to lead to a new all-time high, as a final capitulation could still be in the cards. The ongoing miner selling to sustain operational mining activity after the halving could contribute to the persistent sell pressure, limiting the potential for a strong upward move.
