BTC/USD dropped to 4010 levels on September 10 following a report from Caixin that said that Chinese authorities are planning to stop trading of cryptocurrencies with RMB. It is currently trading at 4209 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 4350.96

Kijun Sen: 4289.95

On the upside, the pair faces resistance at 4330 (5-DMA) and a break above would see it testing 4380 (38.2% retracement of 4979.90 and 4010)/4437 (20-DMA). Further strength would target 4494/4527 (trend line joining 4979.90 and 4679.90)/4609/4679 (September 8 high)/4772.

On the downside, support is seen at 4052 (trend line joining 1830 and 4010) and any violation would drag it to 4000 (psychological)/3895 (78.6% retracement of 3600 and 4979.90). Further weakness would target 3808 (50-DMA)/3776 (38.2% retracement of 1830 and 4979.90)/ 3600 (August 22 low).

Momentum studies have turned bearish with RSI at 47, stochs biased lower, and MACD line below the signal line. In addition, 5- and 10-DMA have also turned suggesting a scope for further downside.

Recommendation: Good to go short on break below 4000. SL: 4440. TP: 3800/3600.

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