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FxWirePro: BTC/USD sees strong support at 20-DMA, break below to see further downside

BTC/USD dropped to 5534 levels on Tuesday before restoring slightly to 5748 levels where it currently trades (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 5640.68

Kijun Sen: 5101.01

On the upside, resistance is seen at 5784 (10-DMA) and a break above would target 5909 (5-DMA)/6000. Further strength would see it testing 6074 (October 20 high)/ 6180 (October 21 high)/ 6220 (161.8% retracement of 4979.90 and 2972.01).

On the flipside, support is seen at 5492 (4h 90-EMA) and any violation would drag the pair to 5422 (23.6% retracement of 2972.01 and 6180)/5339 (20-DMA). Further weakness would target 5270 (1w 5-SMA)/5101 (October 18 low).

Momentum studies: Bias appears to be turning slightly bearish on the daily chart with RSI and stochs on the verge of a rollover from overbought levels and bearish MACD crossover. Some weakness could also be seen on the intraday charts.

The long term-trend of the pair remains bullish as long as the 20-DMA support holds.

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