BTC/USD is trading lower on Monday and is trying to hold above 7200 levels at the time of writing (Bitstamp).

On the top side, resistance is seen at 7380 (1h 50-SMA) and a break above would see the pair testing 7760 (10-DMA)/8000. Further strength would target 8159 (Cloud bottom)/8487 (50-DMA)/8689 (Cloud top).

On the downside, a decisive break below 7180 (78.6% retracement of 6427.16 and 9948.98) would drag the pair further down to 6960 (trend line joining 5920.72 and 6427.16)/6427 (April 1 low). Further weakness would test 6000.

Momentum studies: Bias is extremely bearish on the daily chart with RSI near oversold levels, MACD line below the signal line, and stochs in oversold zone. Bias is bearish on the intraday charts as well with the formation of bearish flag pattern.

Bias is bearish on the weekly chart as well – the pair has breached 50-SMA support, RSI is at 44, MACD line is below the signal line, and stochs are biased sharply lower

Call Update: We recommended staying short in our previous call. The pair has hit TP1 and TP2.

Recommendation: Bias bearish, stay short. Trail SL to 7800. TP: 7200/7000/6500.

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