BTC/USD traded open with a negative gap on Monday, breaking above the key resistance (now turned into support) zone of 45700, marked by the peak of February 10th, as well as the inside swing lows of December 13th until 30th. That barrier also acted as the upper end of the sideways range that had been containing the price action since January 5th. In our view, this has turned the short-term picture positive for now.
At the time of writing, the crypto looks to be heading towards the high of December 31st, at 48500, the break of which could extend the advance towards the 52115 and 53350 zones, defined as resistance by the high of December 26th, and the inside swing low of November 26th. If the bulls are not willing to stop there, then we could see them climbing much higher, perhaps to the 59340 territory, which prevented the price from moving higher between November 21st and 30th.
Shifting attention to our short-term oscillators, we see that the RSI edged north and now looks ready to emerge above 70, while the MACD lies above both its zero and trigger lines. Both indicators detect strong upside speed and support the notion for further advances in this cryptocurrency.
We will abandon the bullish case only if we see a return back below 44650. This could signal the return back within the aforementioned sideways range and may encourage some declines within the range. The first zone to consider as a support may be at 37350, marked by the lows of March 7th and 13th, the break of which could carry extensions towards the low of February 24th, at 34415, or the low of January 24th, at 32800.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.82% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.