BTC/USD is continuing its downtrend on Tuesday and has dropped to 7026 levels so far in the day. It is currently trading at 7117 levels at the time of writing (Bitstamp).

On the top side, resistance is seen at 7257 (1h 50-SMA) and a break above would target 7356 (1h 100-SMA)/ 7635 (10-DMA). Further strength would target 8000/8113 (Cloud bottom)/8491 (50-DMA).

On the downside, the pair is likely to find support at 6970 (trend line joining 5920.72 and 6427.16) and a break below will drag it to 6537 (127.2% extension of 9948.98 and 7267.24)/ 6427 (April 1 low). Further weakness would see it testing 6000.

Momentum studies: Bias is remains bearish on the daily chart with RSI near oversold levels, MACD line below the signal line, and stochs at oversold levels. The trend line joining 5920.72 and 6427.16 is a major support for the pair and any violation would confirm further downside.

Bias is bearish on the hourly charts as well with the formation of bearish flag pattern.

Call Update: We recommended staying short in our previous call. The pair has almost hit TP2.

Recommendation: Book partial profits, stay short. Good to go short on break below 6970.

Trail SL to 7550. TP: 6600/6500

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