BTC/USD is trading lower on Friday as it failed to break above 10-DMA. It is currently trading at 6555 levels at the time of writing (Bitstamp).

On the topside, resistance is seen at 6850 (1h 50-SMA) and a break above would see the pair testing 7020 (10-DMA)/7499 (4h 90-EMA). Further strength would target 7767 (20-DMA)/8000/8508 (4h 200-SMA).

On the flip side, support is likely to be found at 6470 (trend line joining 5920.72 and 6427.16) and any violation would drag the pair to 6170 (trend line joining 5555.55 and 5920.72)/ 5920 (February 06 low). Further weakness would target 5555 (November 12 2017 low)/5000.

Momentum studies: Bias appears bearish on the daily chart with RSI weak at 32, MACD line below the signal line, and stochs rolling over to oversold zone. Bias remains bearish on weekly and hourly charts as well.

Recommendation: Good to go short on break below 6470. SL: 7200. TP: 6170/5920/5555.

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