BTC/USD has dropped below the 10000 mark after it was rejected at channel top. It is currently trading at 9762 levels at the time of writing (Bitstamp).

On the topside, the pair is likely to face resistance at 10043 (4h 90-EMA) and a break above would target 10370 (10-DMA)/10699 (90-EMA). Further strength would see it testing 11091 (50-DMA)/11400 (trend line joining 19666 and 17234)/11772 (Upper Bollinger)/12072 (100-DMA).

On the down side, support is seen at 9481 (2h 200-SMA) and any violation would see it testing 9257 (20-DMA)/9000. Further weakness would drag it to 8575 (78.6% retracement of 5555.55 and 19666)/8489 (200-DMA)/8000/7500.

Momentum studies: Bias appears bearish on the daily chart – RSI has slipped below 50 and stochs have rolled over from overbought levels with lower bias. MACD line is above the signal line, but below the zero line. Bias appears weak on intraday charts as well.

Recommendation: Good to go short on rallies around 9900. SL: 10700. TP: 9257/9000/8575.

FxWirePro launches Absolute Return Managed Program. For more details,