FxWirePro: BTC/USD consolidates 21-EMA resistance breakout, eyes next key resistance at 4h 200-SMA

(Refer BTC/USD chart on Trading View)

BTC/USD is consolidating in a narrow range after it broke above 21-EMA on August 24.

The pair is currently trading at 6720 levels at the time of writing (Bitstamp).

On the top side, it is likely to face resistance at 6879 (38.2% retracement of 8496.96 and 5880) and a break above would target 6954 (4h 200-SMA)/7000. Further strength would see it testing 7068 (90-EMA)/7135 (cloud bottom).

On the downside, the pair is holding 5-DMA support (at 6673 levels) and any violation would drag it to 6608 (1h 100-SMA)/6533 (10-DMA)/6423 (20-DMA)/6272 (61.8% retracement of 5880 and 6906.81).

Bias appears to be turning bullish on the daily chart with RSI above 50, MACD line above the signal line, and stochs near overbought levels. In addition, 5-DMA is also biased higher.

Watch out for a decisive break above 4h 200-SMA which could a jump till cloud bottom.