FxWirePro: BTC/USD upside capped by 5-DMA, likely to re-test 6000

(Refer BTC/USD chart on Trading View)

BTC/USD failed to hold cloud support and plunged to 6121 levels on Wednesday before closing at 6283 levels.

The pair is currently trading just shy of cloud bottom at 6346 levels at the time of writing (Bitstamp).

On the upside, a decisive break above 6377 (cloud bottom) would see the pair testing 6510 (2h 20-SMA)/6664 (5-DMA). Further strength would target 6782 (Cloud top)/6913 (50-DMA)/7000.

On the downside, the pair appears to have found support near June 13 low at 6120 levels. Any violation there would further drag it to 6074 (1w 90-EMA)/6000/5920 (February 6 low)/ 5814 (trend line joining 5555.55 and 5774.72).

Momentum Studies: Bias remain bearish on the daily chart with RSI near oversold levels, MACD line below the signal line, and the pair’s upside capped by 5-DMA.

Call Update: We recommended staying short in our previous call. The pair has almost hit TP2.

Recommendation: Book partial profits, stay short. Trail SL to 7000. TP: 6080/6000.