BTC/USD is trading in the red on Wednesday as it failed to breach 3500 levels. It is currently trading at 3260 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 3046.82

Kijun Sen: 2654.32

On the upside, the pair faces resistance at 3389 (1h 50-SMA) and a break above would see the pair testing 3490 (August 08 high)/3535 (113% extension of 1830 and 3339.66). Further strength would see it testing 3586 (127.2% extension of 751.34 and 2980)/3638 (113% extension of 1830 and 3430.

On the reverse side, the pair has taken support near 3174 (5-DMA) and a break below would drag it to 3052 (20-DMA)/3009 (trend line joining 1830 and 2615). Further weakness would target 2934 (4h 100-EMA)/2862 (4h 100-SMA)/ 2800.

Momentum studies: On the daily chart, RSI is at 65 with slightly lower bias, while MACD line is above the signal line. Stochs are in the overbought zone.

Bias appears bearish on the hourly charts.

Bearish RSI divergence could be seen on the 1-hour chart. MACD and stochs are also biased lower. The pair has broken below the cloud and its upside is now capped. A break below 200-SMA would see further downside.

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