Bitcoin’s price topped €10,000 on Tuesday, hitting its highest level (in euro-denominated terms) in 17 months.
The cryptocurrency rose to €10,024 at 13:10 UTC today – a level last seen on Jan. 21, 2018 – according to CoinDesk’s Bitcoin Price Index, as prices refreshed 15-month highs in US dollar terms with a move above $11,400.
As of writing, BTC’s EUR-denominated exchange rate (BTC/EUR) is trading at €9,939.40, representing 2.75 percent gains on the day. On a month-to-date basis, BTC/EUR is up about 28.7 percent, while BTC/USD is flashing a 31.2 percent price rise.
Bitcoin’s underperformance in EUR terms could be associated with the fact that the 17-nation currency has strengthened 2 percent against the greenback this month. The investors have sold the greenback across the board on rising odds of an interest rate cuts by the US Federal Reserve.
Looking forward, BTC/EUR may continue to lag BTC/USD as interest rate futures are pricing a 100% chance the Fed will cut rates at the end of July. More importantly, markets are betting on a high probability that the US central bank will reduce rates two more times after that.
The performance differential may narrow or could flip in favor of BTC/USD in the near future if the focus shifts from the Fed to strengthening expectations of fresh monetary easing by the European Central Bank (ECB).
BTC/EUR weekly chart
Bitcoin has retraced more than 50 percent of the bear market drop and is currently 260 percent from the low of €2,780 seen in December 2018.
The cryptocurrency is looking overbought at 17-month highs, as per the above-70 reading on the 14-week relative strength index.
The price, however, is showing little signs of bullish exhaustion, with the Chaikin money flow reporting strongest buying pressure since December 2016.
The bullish outlook would be invalidated if the price invalidates bullish higher lows, higher highs pattern with a move below the May 30 high of €8,191.
Disclosure: The author holds no cryptocurrency at the time of writing.
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