BTC/USD has broken above 4200 levels on the back of newly found momentum. It is currently trading at 4221 levels (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 3881.38

Kijun Sen: 3836

The pair is trading in a close range on Thursday and a decisive break above 4212 (61.8% retracement of 4979.90 and 2972.01) would see the pair testing 4326 (Cloud top)/4444 (Upper Bollinger)/4480 (August 17 high). Further strength would target 4550/4679 (September 08 high)/4824 (113% extension of 1830 and 4480)/4900/ 4979 (September 02 high).

On the flipside, support is seen at 4168 (1h 20-SMA) and any violation would drag the pair to 4125 (50-DMA)/4096 (4h 10-SMA). Further weakness would see it testing 4065 (2h 20-SMA). Further weakness would see it testing 3984 (5-DMA)/ 3892 (20-DMA)/3832 (1h 200-SMA)/ 3776 (38.2% retracement of 1830 and 4979.90)/ 3600 (August 22 low).

Momentum studies: Bias has turned bullish on the daily chart, with RSI strong 56, MACD line above the signal line, and stochs rolling over to the overbought zone.

Recommendation: 1. Good to go long on dips around 4200. SL: 3984. TP: 4444.

2. Watch out for a break above 4444 for scope for further upside

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