BTC/USD dropped to 6072 levels on Thursday before closing at 6243 levels. It is largely unchanged on Friday and trading at 6230 levels at the time of writing (Bitstamp).

On the upside, immediate resistance is seen at 6272 (1h 50-SMA) and a break above would target 6376 (20-DMA)/6412 (1h 100-SMA). Further strength would see it testing 6520 (trend line joining 9948.98 and 6820)/ 6648 (4h cloud top)/6759 (23.6% retracement of 9948.98 and 5774.72).

On the downside, support is seen at 6174 (61.8% retracement of 5774.72 and 6820) and any violation would see the pair testing 6093 (trend line joining 5774.72 and 6072)/6000. Further weakness would drag it to 5920 (February 06 low)/ 5780 (June 24 low).

Momentum studies: The inverted hammer pattern on the daily chart suggests that bitcoin bulls are trying to keep the pair from falling below 6000 levels.

However, overall bias remains bearish with RSI weak at 35, stochs biased sharply lower, and MACD on the verge of a bearish crossover on the daily chart.

On the weekly chart, the pair is holding key support at 5963 (90-EMA) and a break below would drag it to 5780 (June 24 low). Bias remains bearish on the weekly chart as well.

Call Update: We recommended going short in our previous call. The pair has hit TP1.

Recommendation: Bias bearish, stay short. SL: 6600. TP: 6000/5920.