BTC/USD dropped to 9222 levels on Wednesday after it broke below trend line support at 10240. However, it managed to close at 11191 levels and is currently trading at 11262 levels at the time of writing (Bitstamp).

On the topside, the pair faces strong resistance at 11743 (90-EMA) and a break above would see it testing 12100 (4h 20-SMA)/ 12610 (Cloud bottom). Further strength would target 12726 (7-DMA)/13164 (10-DMA)/13595 (4h 90-EMA)/14087 (20-DMA)/14598 (50-DMA)/14872 (Cloud top).

On the flipside, support is seen at 10741 (100-DMA) and a break below would target 10300 (trend line joining 5555.55 and 10162)/10000. Further weakness would drag it to 9349 (61.8% retracement of 2972.01 and 19666)/9222 (January 17 low)/9000 (November 30 low)/8575/8000.

Momentum studies: Bias remains bearish on the daily chart with RSI weak at 35, MACD line below the signal line, and stochs near oversold zone. The pair is struggling around 100-DMA and a break below would see further downside. Any trend reversal could be confirmed only if the pair breaks above 50-DMA.

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

Recommendation: Good to go short on break below 10741. SL: 13170. TP: 10300/10000/9349.

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