BTC/USD broke above 8300 levels on Friday and has hit 8340 levels so far in the day. However, it failed to hold its strength and is currently trading at 8274 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 7737.65

Kijun Sen: 6955

On the upside, a decisive break above 8300 levels would target 8454 (trend line joining 7888 and 8354)/8522 (127.2% retracement of 7888 and 5555.55)/8576 (trend line joining 4979.90 and 7888). Further strength would see it testing 8600//8718 (113% extension of 5555.55 and 8354)/8756 (upper Bollinger)/8800.

On the flip side, support is seen at 8158 (1h 100-SMA) and a break below would drag it to 7943 (10-DMA)/7744 (3h 90-EMA). Further weakness would see it testing 7693 (23.6% retracement of 5555.55 and 8354)/7589 (4h 90-EMA)/7500/7374 (20-DMA).

Momentum studies: Bias remains bullish on the daily chart with RSI strong at 66, and MACD line is above the signal line, and major moving averages biased higher. However, cautions is advised as stochs are in the overbought zone.

Recommendation: Good to go long on decisive break above 8300. SL: 7850. TP: 8454/8522

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest