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FxWirePro: BTC/USD holds well above 5-DMA, bias higher, good to go long on dips

BTC/USD hit a fresh all-time high at 8354 levels on November 21. It is currently trading at 8219 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 7410.67

Kijun Sen: 6955

On the upside, resistance is seen at 8389 (trend line joining 7888 and 8354) and a break above would target 8495 (trend line joining 4979.90 and 7888)/8527 (113% extension of 2972.01 and 7888). Further strength would see it testing 8600.

On the flip side, support is seen at 8071 (5-DMA) and any violation would drag it to 7992 (2h 50-SMA)/7890 (3h 50-SMA)/7770 (November 21 low). Further weakness would see it testing 7632 (10-DMA)/7620 (1h 200-SMA)/7500.

8023 (1h 50-SMA) and a break below would target 7965 (5-DMA)/781 (1h 100-SMA). Further weakness would drag it to 7629 (23.6% retracement of 5555.55 and 8269.99)/7540 (4h 55-EMA)/7396 (10-DMA).

Momentum studies: Bias appears bullish on the daily chart with no signs of reversal as major moving averages are biased higher, the pair holding above 5-DMA, RSI is at near overbought levels and MACD line is above the signal line. However, stochs at overbought levels call for high caution.

Recommendation: Good to go long on dips around 8220/40. SL: 7950. TP: 8389/8495.

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