BTC/USD is trading tad lower on Tuesday as it struggles for a close above 90-EMA. It is currently trading at 10938 levels at the time of writing (Bitstamp).

On the topside, a break above 11427 (100-DMA) would see the pair testing 11653 (90-EMA)/11938 (20-DMA). Further strength would target 12282 (38.2% retracement of 17234.99 and 9222)/12809 (3h 200-SMA)/13066 (Cloud bottom)/13138 (4h 200-SMA).

On the downside, support is seen at 10750 (trend line joining 9222 and 9927.54) and a break below would drag it to 10263 (January 26 low)/10000. Further weakness would see it testing 9875 (trend line joining 2972.01 and 9222)/9743 (lower Bollinger)/ 9349 (61.8% retracement of 2972.01 and 19666).

Momentum studies: Overall bias appears bearish as RSI is weak at 40, 20-DMA is biased sharply lower, and the pair is rejected at 90-EMA. Bias appears weak on the hourly charts as well – a bearish flag pattern (see image below) on 1h charts suggest scope for further downside.

Recommendation: Good to go short on break below 10750. SL: 11400. TP: 10263/10000/9875.

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