BTC/USD dropped to 6120 levels on Wednesday before closing at 6307 levels. It is currently trading at 6481 levels at the time of writing (Bitstamp).

On the topside, the pair now faces resistance at 6539 (1h 50-SMA) and a break above would target 6711 (2h 50-SMA)/7000. Further strength would see it testing 7104 (10-DMA)/7275 (20-DMA).

On the downside, support is likely to be found at 6121 (trend line joining 5920.72 and 6120) and any violation would drag it 6000/5920 (February 06 low). Further weakness would drag it to 5555 (November 12 2017 low).

Ran Neu Ner, founder of Onchain Capital, expects bitcoin price to see further downward movement, possibly going as low as $5,900 USD, CCN reported referring to Ner’s recent prediction on CNBC’s Fast Money.

Momentum studies: Bias remains bearish on the daily chart with RSI and stochs at oversold levels, MACD line below the signal line, and the price action well below major moving averages. The pair could see some sideways price action around trend line support, but overall bias is bearish and has potential for further downside.

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

Recommendation: Book partial profits, stay short. Trail SL to 7000. TP: 6000/ 5920.