BTC/USD has breached the trend line support at 9535 and continues to head south on Friday. It is currently trading at 8310 levels at the time of writing (Bitstamp).

On the topside, the pair is likely to face resistance at 9000 and a break above would target 9513 (1h 50-SMA)/9724 (4h 20-SMA). Further strength would target 10248 (7-DMA)/10537 (10-DMA)/11200 (20-DMA).

On the downside, support is seen at 8022 (trend line joining 11159.93 and 9222) and any violation would drag it to 7806 (200-DMA)/7500. Further weakness would target 7000/6381 (127.2% extension of 19666 and 9222)/6000/5555 (November 12 2017 low).

Momentum studies: Bias remains bearish on the daily chart with RSI weak at 30, MACD line below the signal line, stochs rolling over to oversold zone, and major moving averages biased lower.

Weakness could be seen on the weekly chart as well with RSI slipping below 50, bearish MACD crossover, stochs biased lower, and the pair break below 20-SMA support.

Call Update: We recommended going short in our previous call. All the targets have been hit.

Recommendation: Bias lower, stay short. Trail SL to 9580. TP: 8022/7807/7500.

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