BTC/USD is trading in a narrow range on Monday as its upside is capped by 7-DMA. It is currently trading at 6918 levels at the time of writing (Bitstamp).

On the topside, a break above 7002 (2h 50-SMA) would see the pair testing 7189 (7-DMA)/7547 (10-DMA)/8013 (20-DMA). Further strength would target 8436 (38.2% retracement of 11688 and 6427.16)/8975 (4h 200-SMA)/9115 (55-EMA).

On the down side, a break below 6690 (1w 50-SMA) would drag the pair to 6435 (trend line joining 5920.72 and 6427.16)/6153 (trend line joining 5555.55 and 5920.72). Further weakness would see the pair testing 5920 (February 06 low)/5555 (November 12 2017 low).

Momentum studies: Bias appears bearish on the daily chart with the pair’s upside capped by 7-DMA, MACD line below the signal line, and RSI at near oversold levels.

Bias is bearish on the weekly chart as well with RSI below 50, stochs in oversold zone, and MACD line below the signal line.

Recommendation: Good to go short on rallies around 7000. SL: 7600. TP: 6690/6435/5920.

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