BTC/USD broke below the 8000 mark and dropped to 7625 levels on February 02. It is currently trading at 7915 levels at the time of writing (Bitstamp).

On the topside, immediate resistance is seen at 8275 (1h 20-SMA) and a break above would see it testing 8651 (5-DMA)/8747 (1h 50-SMA)/ 9000. Further strength would target 9427 (2h 90-EMA)/9769 (10-DMA)/10000/10466 (23.6% retracement of 19666 and 7625.25)/10565 (20-SMA).

On the downside, strong support is seen at 7899 (200-DMA) and any violation would see it testing 7625 (February 02 low)/7500/7000. Further weakness would drag it to 6544 (78.6% retracement of 2972.01 and 19666)/6059 (113% extension of 19666 and 7625.25)/5555.55 (November 12 low).

Momentum studies: Bias remains bearish on the daily chart with RSI on the verge of a rollover to oversold levels, MACD line below the signal line, stochs rolling over to oversold zone, and major moving averages biased lower. Bias appears bearish on the hourly charts as well.

On the weekly chart, RSI has slipped below 50, MACD line is below the signal line and stochs are biased sharply lower.

Call Update: We recommended staying short in our previous call. TP1 and TP2 have been hit.

Recommendation: Bias lower, stay short. Trail SL to 9000. TP: 7500/7000.

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