FxWirePro: BTC/USD struggles at 6000 support, bias bearish, good to sell on rallies

(Refer BTC/USD chart on Trading View)

BTC/USD has hit a low of 5880 after it got rejected at 10-DMA resistance.

The drop comes amid wider weakness in the cryptocurrency market. According to CoinMarketCap, the total market cap has slid below the $200 billion mark.

The pair is trading in the red and hovering around 6000 levels at the time of writing (Bitstamp).

On the upside, a consistent break above 6190 (5-DMA) would see the pair testing 6283 (2h 50-SMA)/6447 (10-DMA). Further strength would target 6500 (1h 200-SMA)/6586 (23.6% retracement of 8496.96 and 5995.75).

On the downside, the pair is trying to hold 6000 support and a decisive break below would see it testing 5818 (trend line joining 5555.55 and 5774.72). Further weakness would drag it to 5700/5589 (Lower Bollinger).

Technical indicators are bearish on the daily chart – MACD line is below the signal line, RSI is near oversold levels, and stochs are in the oversold levels with no sign of reversal.

Recommendation: Good to go short on rallies around 6000/6030. SL: 6500. TP: 5900/5820/5700.