FxWirePro: BTC/EUR breaks below 200-DMA, eyes 78.6% Fib at 5488

• BTC/EUR has extended downside after decisive break below major trendline support.
   
• The pair has shown a breach at major support at 200-DMA, currently at 6626.
   
• Technical studies are biased lower. We see -ve DMI dominance which supports further downside.
   
• RSI and Stochs sharply lower, momentum heavily bearish. 5-DMA is sharply lower and Bollinger Bands are widening.
   
• Close below 200-DMA will see major weakness in the pair. Scope then for test of 78.6% Fib retrace at 5488.
   
• On the flipside, 5-DMA at 6897 is immediate resistance, close above could see minor upside till 20-DMA. Bullish invalidation likely on decisive break above 20-DMA.

Support levels - 6000 (psychological level), 5488 (78.6 % Fib retrace of 2502 to 16457 rally), 4736 (Nov 12 low)

Resistance levels - 6897 (5-DMA), 7832 (61.8% Fib), ), 8573 (20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-BTC-EUR-capped-below-5-DMA-good-to-go-short-on-break-below-7790-1127299) is approaching TP3 at 6000 levels.

Recommendation: Book partial profits at lows. Watch for close below 200-DMA for further weakness.

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