FxWirePro: BTC/USD upside capped by 10-DMA, close above to see minor upside

(Refer BTC/USD chart on Trading View)

BTC/USD surged to 6628 levels on Wednesday but failed to close above 10-DMA and closed at 6272 levels, forming an inverted hammer pattern.

The pair is currently trading around 6300 levels at the time of writing (Bitstamp).

On the upside, a consistent break above 6325 (10-DMA) would see it testing 6497 (23.6% retracement of 8496.96 and 5880)/6556 (3h 100-SMA). Further strength would target 6657 (4h 90-EMA)/6782 (cloud bottom).

On the downside, support is seen at 6248 (1h 50-SMA) and a break below would drag it to would 6120 (June 13 low)/6000. Further weakness would test 5880 (August 14 low)/5780 (June 24 low).

On the daily chart, the formation of hammer pattern followed by an inverted hammer suggests current market indecisiveness. The pair is trading in a close range today with its upside capped by 10-DMA.

Watch out for a close above 10-DMA for minor upside in the pair.