Bitcoin 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 Feb. 10, as well as the inside swing lows of Dec. 13 until 30. That barrier also acted as the upper end of the sideways range containing the price action since Jan. 5. 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 Dec. 31, at 48500, the break of which could extend the advance towards the 52115 and 53350 zones, defined as resistance by the high of Dec. 26, and the inside swing low of Nov. 26. If the bulls are unwilling to stop there, we could see them climbing much higher, perhaps to the 59340 territory, which prevented the price from moving higher between Nov. 21 and 30.
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 its zero and trigger lines. Both indicators detect high upside speed and support the notion of 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 within the aforementioned sideways range and encourage some declines within the range. The first zone to consider as a support may be at 37350, marked by the lows of Mar. 7 and 13, which could carry extensions towards the low of Feb. 24, at 34415, or the low of Jan. 24, at 32800.
