BTC/USD is trading in a narrow range on Wednesday and trading at 2720 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2664.58

Kijun Sen: 2384

On the upside, the pair faces immediate resistance at 2744 (7-DMA) and a consistent break above would target 2825 (28 July high)/2860 (4h upper Bollinger)/2922 (trend line joining 2980 and 2938). Further uptrend would target 2980 (June 12 high)/3091 (113% retracement of 2980 and 2120).

On the reverse side, the pair is trading just above 2675 (trend line joining 1830 and 2615) and a break below would drag it to 2569 (July 30 low)/2534 (50-DMA). Further weakness would target 2483 (55-EMA)/ 2400 (July 26 low)/2325 (Cloud bottom).

Momentum studies: The pair is trading in a “Rising triangle” pattern and a break above 2922 would confirm further upside.

Bias appears neutral on the daily chart. On the weekly chart, the pair is holding well above 7-DMA and stochs are on the verge of a rollover into the overbought zone.

Recommendation: Wait for a clear directional bias.

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