BTC/USD is struggling to hold above 10000 levels and is currently trading at 9816 levels at the time of writing (Bitstamp).

On the topside, resistance is seen at 101358 (1h 50-SMA) and a break above would target 10466 (2h 20-SMA)/10872 (10-DMA). Further strength would see it testing 11000/11535 (20-DMA)/12000.

On the downside, the pair has found support near 9520 (trend line joining 11159.93 and 10162) and a break below would see it testing 9349 (61.8% retracement of 2972.01 and 19666)/9222 (January 17 low). Further weakness would target 9000/8575 (78.6% retracement of 5555.55 and 19666)/8172 (trend line joining 11159.93 and 9222)/8000.

Momentum studies: Bias remains bearish on the daily chart with RSI weak at 35, bearish MACD crossover, stochs on the verge of a rollover into oversold zone, and major moving averages biased lower.

On the weekly chart, the pair is hovering just above 9845 (20-SMA), with stochs biased sharply lower, and bearish MACD crossover. A decisive break below 20-SMA, coupled with RSI falling below 50, would confirm further bearishness in the pair.

Call Update: We recommended going short in our previous call. The call still holds.

Recommendation: Good to go short on break below 9520. SL: 10750. TP: 9349/9222/9000/8575.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest