BTC/USD dropped to 15800 levels earlier in the day as it continued its downward trend from the past few session. It is currently trading at 16650 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 17171.59

Kijun Sen: 13771

On the topside, a consistent break above 17000 levels would see the pair testing 17435 (1h 20-SMA)/ 17645 (2h 100-SMA). Further strength would target 18296 (5-DMA)/18507 (2h 50-SMA)/19000.

On the reverse side, the pair has found support near 15726 (23.6% retracement of 2972.01 and 19666) and any violation would see it testing 15312 (20-DMA)/14275 (38.2% retracement of 5555.55 and 19666). Further weakness would drag the pair to 14143 (1w 7-SMA)/13815 (3h 200-SMA)/13288.

Momentum studies: Bias appears to be turning bearish on the daily chart with 5-DMA showing a turn, RSI and stochs rolling over from overbought levels, and MACD on the verge of a bearish crossover. Bias appears bearish on the intraday charts as well.

However, 20-DMA is a major support for a pair and any trend reversal could be confirmed only on a break below this level. Bias is bullish on the weekly charts. Overall bias is bullish as long as 20-DMA support holds. The current dips could be seen as a buying opportunity.

Recommendation: Good to go long on dips around 16600/16700. SL: 15300. TP: 17000/17435/17645.

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