BTCUSD:Major trend line break out (confirm target $7400)

BTCUSD:Major trend line break out (confirm target $7400)

Major trend line resistance – 5720 (trend line joining $4488 and $5488)

BTCUSD has broken major trend line resistance around $5720 after a long consolidation. It hits low of $3215 on Dec 15th, 2018 from an all-time high of $19891 made on Dec 17th, 2017 (more than 80% sell-off). The pair hits intraday high of $6145 and is currently trading around $6042.

The overall trend is bullish as long as support $5197 (300- day EMA). After a long time, the pair has closed for continuous one week above 300- day EMA confirms major trend reversal and a jump till $6600/$7400 possible.

On the lower side, near term support is around $5457 (23.6% fib) and any break below will drag the pair to next level $5197 (300- day EMA) and any daily close below $5197 confirms further weakness, decline till $4530 (200- day MA)/$3700 is likely.

In the daily chart, CCI(50) is showing Bearish Divergence and a minor decline till 5500-5600 is possible. Use this dip as a buying opportunity.

It is good to buy on dips $5650-5700 with SL around $5150 for the TP of $7400.