BTC/USD dropped to 7267 levels on Thursday before it closed at 7586 levels. It is currently trading at 7429 levels at the time of writing (Bitstamp).
On the top side, the pair faces resistance at 7624 (1h 50-SMA) and a break above would target 8039 (10-DMA)/8159 (Cloud bottom)/8460 (50-DMA). Further strength would target 8814 (100-DMA)/9000.
On the downside, a decisive break below 7474 (trend line joining 6427.16 and 7435.490) would drag it to 7306 (Lower Bollinger)/ 7180 (78.6% retracement of 6427.16 and 9948.98). Further weakness would target 6933 (trend line joining 5920.72 and 6427.16)/6427 ( April 1 low).
Momentum studies: Bias remains bearish on the daily chart with RSI weak at 34, MACD line below the signal line, and stochs in oversold zone. Bias is bearish on the weekly and intraday charts as well.
Call Update: We recommended staying short in our previous call. The pair has hit TP1.
Recommendation: Book partial profits, stay short. Trail SL to 8100. TP: 7300/7200/7000.
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