BTC/USD has broken below major support at 200-DMA and plunged to 6021 levels. It is currently trading at 6148 levels at the time of writing (Bitstamp).

On the topside, the pair is likely to face resistance at 6561 (1h 20-SMA) and a break above would see it testing 6908 (1h 20-SMA)/7000. Further strength would target 7440 (2h 20-SMA)/7911 (200-DMA)/8256 (2h 50-SMA).

On the downside, support is seen at 6059 (113% extension of 19666 and 7625.25) and a break below would drag the pair to 5555.55 (November 12 low)/5000. Further weakness would see the pair plunging to 4350/4000.

Momentum studies: Bias remains bearish on the daily chart with RSI and stochs at oversold levels, MACD line below the signal line, major moving averages biased lower, and the pair breaching 200-DMA support. Bias appears bearish on the hourly and weekly charts as well.

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

Recommendation: Bias lower, stay short. Trail SL to 7900. TP: 5555/5000/4350.

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