BTC/USD is trading in the red on Monday around 8400 levels after it found support near 50-DMA (Bitstamp).

On the upside, the pair faces resistance at 8691 (1h 100-SMA) and a break above would see it testing 8831 (100-DMA)/9057 (Cloud top)/9151 (10-DMA). Further strength would target 9690 (trend line joining 11688 and 9948)/9983 (Upper Bollinger)

On the downside, support is likely to be found at 8269 (50-DMA) and any violation would drag the pair to 8000/7772 (61.8% retracement of 6427.16 and 9948.98)/7631 (Cloud bottom). Further weakness would target 7180/7000.

Momentum studies: Bias remains bearish on the daily chart with RSI weak at 42, MACD line below the signal line and stochs rolling over to oversold zone and stochs biased sharply lower. Intraday bias is also bearish.

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

Recommendation: (i) Book partial profits, stay short. Trail SL to 8800. TP: 8270/8000.
(ii) Good to go short on break below 50-DMA.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest