BTC/USD is trading in the green on Wednesday with its upside capped by 5-DMA. It is currently trading at 2348 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2439.50

Kijun Sen: 2514.27

On the upside, immediate resistance is seen at 2406 (5-DMA) and a break above would target 2488 (convergence of cloud top and 10-DMA)/2528 (50-DMA). Further strength would see it testing 2550 (50% retracement of 2980 and 2120).

On the downside, the pair trying to hold above 2263 (61.8% retracement of 1850 and 2933) and any violation would target 2182 (38.2% retracement of 891.33 and 2980)/2120 (June 15 low). Further weakness would drag it to 2097 (100-EMA)/1996 (100-DMA).

Momentum studies: Overall bias appears weak on the daily chart as RSI, stochs, and MACD are biased lower.

On the 1-hour chart, MACD, stochs, and RSI are biased higher, meaning that we could see some consolidation around current levels. The pair is trading just shy of 50-SMA and hovering around cloud bottom. A consistent break above could see jump till 2399.

Trend reversal would be confirmed only if the pair breaks above 2500 (trend line joining 1850 and 2120).

Bias appears bearish on the weekly charts. Stochs have rolled over from the overbought level, RSI is on the verge of a rollover from the overbought level, and the upward momentum of MACD appears to be waning. 5-SMA has also turned. A close below 10-SMA coupled with bearish confirmations from RSI and MACD would see further downside.

Call update: We recommended staying short in our previous call.

Recommendation: Hold for targets. SL: 2482. TP: 2182/2120

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