BTC/USD has recovered slightly from the 7-month low of 5780 levels hit on June 24. It is currently trading at 6234 levels at the time of writing (Bitstamp).

The pair’s upside is capped by 6333 (7-DMA) and a break above would target 6422 (10-DMA)/6483 (trend line joining 9948.98 and 7750). Further strength would test 6653 (20-DMA)/6894 (3h 200-SMA)/7026 (4h 200-SMA).

On the flipside, support is seen at 6143 (1h 50-SMA) and a break below would target 6000/5920 (February 06 low). Further weakness would drag it to 5780 (June 24 low)/5622 (113% extension of 9948.98 and 6120).

Momentum studies: Overall bias remains bearish on the daily chart with the price action well below major moving averages. The bear flag momentum also suggests scope for further downside.

Call Update: We recommended staying short in our previous call. Both the targets have been hit.

Recommendation: Book partial profits, stay short.
Good to go short on rallies around 6240/60. Trail SL to 6700. TP: 6150/6000/5800.