BTC/USD has broken the trend line support joining 6427.16 and 7929.53 and is currently trading at 7935 levels at the time of writing (Bitstamp).

On the top side, resistance is seen at 8060 (trend line joining 6427.16 and 7929.53) and a break above would see it testing 8287 (10-DMA)/8438 (50-DMA). Further strength would target 8523 (Cloud bottom)/8848 (100-DMA)/9000.

On the downside, the pair is now targeting 7772 (61.8% retracement of 6427.16 and 9948.98) and a break below would see it testing 7631 (1w 50-SMA)/7574 (lower Bollinger)/ 7325 (March 18 low). Further weakness would drag it to 7180 (78.6% retracement of 6427.16 and 9948.98)/7000.

Momentum studies: Bias remains bearish on the daily chart with MACD line below the signal line, and RSI weak at 38, and stochs rolling over to oversold levels. Intraday bias is also bearish.

Call Update: We recommended staying short in our previous call. The call is progressing well and TP1 has been hit.

Recommendation: Bias bearish, stay short. Trail SL to 8700. TP: 7700/7600.

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