BTC/USD failed to hold above 50-DMA and closed at 3848 levels on Tuesday. It is currently trading at 3922 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 3674.83

Kijun Sen: 3975.95

On the upside, the pair faces resistance at 4007 (50-DMA) and a break above would target 4075 (trend line joining 4979.90 and 4679.97)/4164 (20-DMA). Further strength would see it testing 4212 (61.8% retracement of 4979.90 and 2972.01)/4300/4480 (August 17 high)/4550 (78.6% retracement of 4979.90 and 2972.01).

On the flipside, support is seen at 3844 (10-DMA) and any violation would drag the pair to 3793 (cloud top)/3759 (1w 10-SMA)/3600 (August 22 low). Further weakness would drag it to 3463 (September 17 low)/3404 (50% retracement of 1830 and 4979.90).

Momentum studies: On the daily chart, RSI is weak at 44 and MACD line is below the signal line. However, stochs are biased higher and the pair is holding above the Ichimoku Cloud.

The pair is trading in a narrow range as its upside is capped by trend line resistance joining 4979.90 and 4679.97.

Recommendation: Wait for clear directional bias.

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