The European Central Bank (ECB) has reiterated its anti-cryptocurrency stance, remaining unswayed by the recent approvals of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). In a recent blog post, ECB officials Ulrich Bindseil and Jurgen Schaaf described the approvals as "The Emperor's New Clothes," expressing skepticism about the safety of BTC investments and dismissing the previous bull run as a sign of unstoppable triumph. The ECB maintains that Bitcoin's fair value is zero, warning of significant collateral damage from the cryptocurrency's boom-and-bust cycles, including environmental harm and wealth redistribution at the expense of the less educated.
The ECB leadership also commented on the digital euro, countering concerns about a potential banking crisis and the risk of banks losing deposits as a source of long-term refinancing.
Technical Analysis:The BTC/USD pair shows a compelling picture on the 1-hour intraday chart. We observe a strong bullish pattern, underlined by 19 out of 23 technical indicators giving a 'Buy' signal. Only 2 indicators suggest a 'Sell', with the remaining 2 remaining neutral. Moving averages reinforce this view, with 16 out of 18 signaling 'Buy'. The Relative Strength Index (RSI) is at 81.41, indicating an overbought condition that traders should monitor for potential pullbacks.
The H4 chart features several candlestick patterns. A bullish engulfing pattern precedes the current price action, suggesting strong buyer presence. A hammer and another bullish engulfing pattern appear at the lower trendline of an ascending channel, reinforcing the bullish outlook. The presence of a pin bar near the resistance level signals a potential hesitation in the uptrend, warranting caution.
Market Scenarios:Bullish Scenario: The strong bullish sentiment, supported by the majority of technical indicators and moving averages, suggests that BTC/USD may continue to rise. If it breaks above the resistance at $58,863, the currency pair could aim for the weekly resistance levels, with WR3 at $52,446 being the next significant target.
Bearish Scenario: Should the RSI's overbought signal translate into a price correction, we could see BTC/USD retreat towards the weekly pivot point at $51,414. A break below this level might lead to further declines towards the support levels of WS1 at $51,079 and WS2 at $50,888.
Useful LinksMore ArtclesInstaForex Course for BeginnersOpen Trading AccountImportant NoticeThe begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.
Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.
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