BTC/USD fell to 6461 levels on Tuesday and is currently trading in an extremely narrow range. It is currently trading at 6568 levels at the time of writing (Bitstamp).

On the topside, the pair faces immediate resistance at 6620 (1h 20-SMA) and a consistent break above would see the pair testing 6833 (4h 20-SMA)/7000. A further uptrend in the pair would target 7236 (10-DMA)/7341 (20-DMA).

On the downside, the pair stopped short of April 1 low at 6427 levels. A break below this level would weaken the pair further to 6232 (127.2% extension of 9948.98 and 7026.90)/ 5920. Further downward movement would see it testing 5555 (November 12 2017 low).

Momentum studies: Technical indicators suggest bearish bias with RSI and stochs at oversold levels, MACD line below the signal line, and the price action well below major moving averages.

Call Update: We recommended going short in our previous call. The pair has almost hit TP1.

Recommendation: Bias bearish, stay short. SL: 7200. TP: 6450/6250/6000.

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