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FxWirePro: BTC/USD breaks below Ichimoku cloud, break below 1w 20-SMA to see further downside

BTC/USD is continuing its downtrend on Friday as it broke below 100-DMA following BTCChina's announcement to stop all trading by this month's end. It is currently trading at 3070 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 3865.51

Kijun Sen: 4015.48

On the upside, resistance is seen at 3253 (1h 10-SMA) and a break above would see the pair testing 3296 (2h 10-SMA)/3320 (1h 20-SMA). Further strength would target 3492 (23.6% retracement of 4979.90 and 3033.33)/3542 (2h 20-SMA)/3624 (1h 50-SMA)/3704 (5-DMA).

On the downside, support is seen at 3033 (61.8% retracement of 1830 and 4979.90) and any violation would drag it to 2904 (1w 20-SMA)/2865 (50% retracement of 751.34 and 4979.90)/ 2780 (113% extension of 4979.90 and 3033.33)/2600/2503/ 2400 (July 26 low)/2351 (200-DMA).

Momentum studies: Bias is extremely bearish on the daily chart with RSI and stochs in the oversold zone and MACD line below the signal line. 1w 20-SMA is a major support level for the pair and it is biased higher.

Recommendation: Watch out for a break below 2900.

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