BTCUSD short term bearish, recent fall from record highs.

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
The bitcoin has fallen from recent record highs and is currently respecting short term Fibonacci 50% resistance levels. This coincides with a stochastic overbought level on the four hour chart. Stronger resistance at these levels has been indicated by the scenario. The long term trend is up, so shorting the trade carries a higher risk, however it can still be taken out with tighter stop losses just above the resistance of around $6800, depending on the risk strategy. A good take profit area would be the $5600 area on a short trade. This would make a roughly 5:1 trade.

Alternatively, profits can be booked from previous trades while waiting for lower levels to enter the market again. The recommended action is to wait until the stochastic falls to oversold levels and price reaches previous support levels, the recent lows and orange support lines in the graph. These supports then become our area of buying interest.