BTC/USD recovered from the lows of 6121 levels and closed at 6543 levels on Thursday.
The pair’s upside remains capped by 5-DMA and it is now trading in the red at 6438 levels at the time of writing (Bitstamp).
On the upside, the pair faces stiff resistance at 6584 (5-DMA) and a break above would see it testing 6667 (2h 50-SMA)/ 6782 (Cloud top)/6912 (50-DMA)/7000.
On the downside, any violation of 6371 (cloud bottom) would see the pair testing 6200/6137 (trend line joining 5774.72 and 6121)/6076 (1w 90-EMA). Further weakness will drag it to 6000/5920 (February 6 low).
Momentum Studies: Technical indicators are bearish on the daily chart with RSI near oversold levels, MACD line below the signal line, and the price action well below major moving averages. We could see some consolidation around cloud bottom, but overall bias is bearish.
Call Update: We recommended staying short in our previous call. The call still holds.
Recommendation: Hold for targets.
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