BTC/USD retraced its dip below 6000 levels and closed at 7737 levels on Tuesday. It is currently trading at 7347 levels at the time of writing (Bitstamp).

On the topside, resistance is seen at 7877 (5-DMA) and a close above would see the pair testing 7941 (200-DMA)/8475 (2h 90-EMA). Further strength would target 8848 (10-DMA)/9000/9519 (4h 90-EMA)/10000.

On the reverse side, support is seen at 7150 (1h 50-SMA) and a break below would target 6921 (lower Bollinger)/6381 (127.2% extension of 19666 and 9222). Further weakness would drag the pair to 6000/5920 (February 06 low)/5555.55 (November 12 low)/5000.

Momentum studies: Bias remains bearish on the daily chart with RSI weak at 31, MACD line below the signal line, major moving averages biased lower, and the pair trading below 200-DMA. The pair’s upside is being capped by 5-DMA.

Intraday charts appear slightly bullish. On the 4h chart, stochs are biased higher, RSI is at 45 with upward bias, and MACD line is above signal line suggesting scope for minor bullishness.

Bias remains bearish on the weekly chart with stochs biased sharply lower, RSI below 60 and bearish MACD crossover.

Recommendation: Good to go short on rallies around 7500/7600. SL: 8900. TP: 7150/6921/6381.

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