BTC/USD continues trading in a tight range in a symmetrical triangle pattern on Monday. It is currently trading at 2484 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2463.36

Kijun Sen: 2550

On the upside, the pair faces immediate resistance at 2501 (10-DMA) and a consistent break above would see it testing 2545 (convergence point of 20-DMA and trend line joining 2980 and 2789)/2598 (61.8% retracement of 2789 and 2291). Further uptrend would target 2651 (61.8% retracement of 2980 and 2120)/2682.

On the downside, the pair is currently hovering around 2482 (5-DMA) and a decisive break below would target 2428 (50-DMA)/2374 (trend line joining 1850 and 2120). Further weakness would drag it to 2291 (June 27 low)/2236 (78.6% retracement of 2120 and 2789).

Momentum studies: Overall bias appears bearish as RSI is weak at 48, stochs are biased lower, and MACD line is below the signal line on the daily chart.

On the weekly chart, the pair failed to close above 5-SMA and stochs are on the verge of a roll over from the overbought zone. However, RSI continues to hold above 70 and MACD line is above the signal line. Only a consistent break below the major trend line support would confirm further bearishness in the pair.

Recommendation: Good to go short on decisive break below 2482. SL: 2545. TP: 2428/2374.

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