The 20-day EMA is proving to be a major hurdle for Bitcoin. Today, the price has turned down once again. Both the moving averages and the RSI are falling, which is a negative sign. If the immediate support at the small trendline breaks, the digital currency can fall to $7,433, $7,317 and $7,100.
The first signs of recovery will be when the BTC/USD pair breaks out and sustains above the 20-day EMA. Confirmation of a change in the short-term trend will be on a breakout and close above $7,941.68.
We continue to hold the view that the large range between $6,075-$12,172 is still in play. Therefore, traders should either wait for a break out above $7,941.68 or for a fall closer to $6,500 to initiate long positions.