BTC/USD broke below trend line resistance on Thursday and has dropped to 12800 levels so far in the day. It is currently trading at 13305 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 15017.49

Kijun Sen: 15412.96

On the topside, resistance is seen at 13805 (1h 7-SMA) and a break above would target 14409 (38.2% retracement of 19666 and 11159.93)/14778 (20-DMA). Further strength would see it testing 15057 (1h 100-SMA)/15302 (10-DMA)/16000/16416 (61.8% retracement of 19666 and 11159.93).

On the flipside, the pair is struggling to hold above 13391 (trend line joining 11159.93 and 12050) and a decisive break below would drag the pair to 12564 (lower bollinger)/12466 (Cloud bottom). Further weakness would see it testing 12000/11590 (90-EMA).

Momentum studies: Bias remains bearish on the daily chart with RSI weak at 43, bearish MACD crossover and stochs biased sharply lower. Bias appears weak on the intraday charts as well.

On the weekly chart, stochs and RSI have rolled over from overbought zone, while MACD line is above the signal line. 10-SMA is a major support for the pair and any violation would see further downside.

Call Update: We recommended staying short in our previous call. The pair has hit TP1 and TP2.

Recommendation: Book partial profits, stay short. Trail SL to 14800. TP: 12564/12466.

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