BTC/USD continues to trade in the red on Monday as it failed to break above the strong trend line resistance. It is currently trading at 2445 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2610.50

Kijun Sen: 2550

On the upside, the pair faces strong resistance at 2562 (4h 200-SMA) and a break above would target 2607 (10-DMA)/2648 (20-DMA). Further uptrend would see it testing 2683 (trend line joining 2980 and 2789)/2789 (June 21 high).

On the downside, immediate support is seen at 2415 (50% retracement of 1850 and 2980) and a break below would target 2323 (50-DMA)/2281. Further weakness would drag it to 2218 (cloud top)/2120 (June 15 low).

Momentum studies: Overall bias appears bearish with MACD line below signal line, RSI weak at 47, and the pair’s upside being capped by 5-DMA. Bias appears bearish in the hourly charts as well.

On the weekly chart, the pair is trading well below 5-SMA, stochs have rolled over from overbought zone, and RSI is at 70.

Recommendation: Good to go short on rallies around 2475/2485. SL: 2562. TP: 2323/2281.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest