BTC/USD continued its downtrend on Tuesday and fell to 3600 levels. It is currently trading at 3821 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 4040

Kijun Sen: 3524.84

On the upside, the pair now faces resistance at 3864 (1h 10-SMA) and a break above would target 3938 (1h 20-SMA)/4007 (5-DMA). Further strength would see it testing 4073 (2h 50-SMA)/4120 (10-DMA)/4146 (2h 100-SMA)/4200/4291 (78.6% retracement of 4480 and 3600)/4400 (August 15 high)/4480 (July 17 high).

On the reverse side, support is seen at 3719 (20-DMA) and a break below would see it testing 3646 (trend line joining 1830 and 2615)/3600. Further weakness would drag it to 3573 (1w 5-SMA)/3500/ 3467 (38.2% retracement of 1830 and 4480)/3400/3158 (55-EMA)/3001 (50-DMA).

Momentum studies: Overall bias remains bearish with RSI and stochs biased lower and bearish MACD crossover on the daily chart. The pair is likely to find support near the trend line joining 1830 and 2615 and a decisive break below would see further downside. Bias remains weak on the hourly charts as well

Call Update: We recommended going short in our previous call. Both the targets have been hit.

Recommendation: 1. Stay short. Lower the trailing stop to 4050. TP: 3500/3467/3400.
2. We recommend a fresh call to go short on break below 3646. SL: 4050. TP: 3500/3467/3400

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