Bitcoin (BTC) is in a consolidation phase characterized by a narrow price range with low trading volume. So far, the cryptocurrency has struggled to make a decisive move above the $30,000 mark, which is near the top of its recent range.
BTC is up 3% over the past 24 hours, and momentum has improved over the past week. This means that buyers could remain active above the $27,500 support level.
The sharp downward move on May 12 towards $25,300 occurred on high volume, which could be a sign of capitulation, albeit less severe than the last sell-off.
Despite the scope for a price recovery, the upside potential seems limited due to the negative momentum readings on the weekly and monthly charts.