BTC/USD is trading in the red on Friday as it failed to break above the Ichimoku cloud. It is currently trading at 4115 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 3892

Kijun Sen: 3825.99

On the upside, a consistent break above 4138 (50-DMA) would see the pair testing 4212 (61.8% retracement of 4979.90 and 2972.01)/4326 (Cloud top). Further strength would target 4399 (upper Bollinger)/4480 (August 17 high)/ 4550/4679 (September 08 high).

On the flipside, support is seen at 4060 (5-DMA) and a break below would see the pair testing 4019 (2h 50-SMA)/3946 (4h 55-EMA). Further weakness would drag it to 3878(20-DMA)/ 3776 (38.2% retracement of 1830 and 4979.90)/ 3600 (August 22 low).

Momentum studies: Bias appears slightly bullish on the daily chart as RSI is holding above 50, 5-DMA is sharply higher, and bullish MACD crossover.

Recommendation: Watch out for a close below 5-DMA for signs of weakness

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