BTC/USD is continuing its downward move on Thursday as it broke below 10-DMA. It is currently trading at 4155 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 4161.50

Kijun Sen: 3712.50

On the upside, resistance is seen at 4222 (10-DMA) and a break above would target 4291 (5-DMA)/4390 (convergence of trend line joining 4979.90 and 4453 and cloud top). Further strength would target 4480 (August 17 high)/ 4550 (78.6% retracement of 4979.90 and 2972.01)/4679 (September 08 high).

On the flipside, the pair is trading just below 4167 (50-DMA) and a decisive break below would drag it to 4090 (4h 200-SMA)/4000 (20-DMA). Further weakness would see it testing 3932 (55-EMA)/3887 (38.2% retracement of 2972.01 and 4453)/3776 (38.2% retracement of 1830 and 4979.90)/3600.

Momentum studies: Bias appears slightly bearish on the daily chart with RSI at 51 with lower bias, stochs on the verge of a rollover from the overbought levels, and 5-DMA is showing a turn. However, MACD line is above the signal line.

Recommendation: Watch out for a break below 20-DMA for signs of further bearishness.

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