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FxWirePro: BTC/USD upside capped by 5-DMA, good to go short on rallies

BTC/USD failed to close above 10-DMA on Tuesday and is currently trading at 2739 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2730

Kijun Sen: 2415

On the upside, the pair is facing stiff resistance at 2791 (5-DMA) and a decisive break above would see it testing 2878 (113% retracement 2760 and 1850)/ 2933 (June 06 high). Further strength would target 2980 (June 12 high)/ 3007.52 (127.2% retracement 2760 and 1850).

Support is seen at 2643 (4h 90-EMA) and any violation would see the pair falling to 2603 (2h 200-SMA)/2555 (20-DMA)/2480 (June 12 low).

Momentum studies: On the daily chart, RSI is strong at 61, although multiple bearish divergence could be seen. MACD line has crossed the signal line from above, and stochs have rolled over from the overbought zone. The 5-DMA has turned but the pair is holding above 20-DMA. A close below 20-DMA would see some downside in the pair.

Recommendation: good to go short around 2740/2750. SL: 2820. TP: 2555/2415.

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