BTC/USD is trading in the red at 6630 levels on Wednesday (at press time) as it is trying to hold above 10-DMA (Bitstamp).

Earlier in the day, Bithumb announced that it has lost $31 million in cryptocurrencies in a major hacking attack on its platform.

On the topside, resistance is seen at 6802 (3h 100-SMA) and a break above would see the pair testing 7049 (20-DMA)/7147 (3h 200-SMA). Further strength would target 7361 (4h 200-SMA)/7582 (38.2% retracement of 9948.98 and 6120).

On the downside, a decisive break below 6579 (10-DMA) would drag it to 6128 (trend line joining 5920.72 and 6120)/6014 (lower Bollinger). Further weakness would test 5920 (February 06 low)/5622 (113% extension of 9948.98 and 6120).

Momentum studies: On the daily chart, RSI is weak at 39, while MACD is on the verge of a bullish crossover. The bear flag pattern suggests scope for further bearishness. The price is action is also well below major moving averages and trying to hold above 10-DMA support.

Overall bias is bearish and a break below 10-DMA would see further downside. A break above 20-DMA could see minor bullishness in the pair.

Recommendation: Good to go short on break below 10-DMA. SL: 7100. TP: 6150/6000.