BTC/USD failed to hold its strength above the Ichimoku cloud and is now trading in the red at 4292 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 4055.69

Kijun Sen: 3825.99

On the upside, resistance is seen at 4390 (Cloud top) and a break above would target 4431 (trend line joining 4979.90 and 4453)/4480 (August 17 high). Further strength would see it testing 4550/4679 (September 08 high).

On the flipside, the pair is trading below 4311 (5-DMA) and a consistent break below would see it testing 4288 (2h 50-SMA)/4236 (23.6% retracement of 1830 and 4979.90). Further weakness would drag it to 4170 (50-DMA)/4140 (10-DMA)/4050 (1w 10-SMA)/3927 (20-DMA).

Momentum studies: On the daily chart, RSI is at 56 with slightly lower bias, MACD line is above the signal line, and stochs are in the overbought zone. However, bias appears bearish on the hourly charts.

Call Update: We recommended staying long in our previous call. The pair has hit the target.

Recommendation: Wait for clear directional bias.

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