Failing to break above 21 MA, BTC/USD took a deep plunge on Thursday, falling to $632 levels. It has recovered slightly and currently trades at $642.09 levels (Bitstamp), at the time of writing.

“The pair has retreated drastically after making a high of $679. BTC/USD has broken major support $653 (200 4H MA).So slight weakness $600/$540 is possible”, FxWirePro said in a statement.

Ichimoku analysis (4 Hour chart):

Tenkan-Sen level: $670.45

Kijun-Sen level: $672.54

Trend reversal level - (90 4H EMA)-$665

Major resistance is around $673 (7 4H EMA) and any break above targets $685 (Jun 25 high)/$705 (Jul 2 high)/ $731 (161.8% retracement of $778 and $540).

Short term support is likely to be found at $640 (Jul 4 low) and any violation below will drag the pair till $621 (Jun 29 low)/$602 (61.8% retracement of $540 and $704.93)/$540 (Jun 23 low).