BTC/USD reversed its losses on Tuesday and closed above 5-DMA at 2564 levels. It is currently trading at 2515 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2624.16

Kijun Sen: 2921.36

On the upside, resistance is seen at 2552 (2h 100-EMA) and a break above would see the pair testing a 2593 (10-DMA)/ 2640 (trend line joining 2980 and 2789). Further strength would target 2682 (78.6% retracement of 2789 and 2291)/2760 (May 25 high).

On the downside, strong support is seen at 2356 (50-DMA) and any violation would drag it to 2303 (trend line joining 1850 and 2120)/2281 (61.8% retracement of 1850 and 2980)/2231 (Cloud Top). Further weakness would see it testing 2120 (June 15 low).

Momentum studies: On the daily chart, RSI is weak at 49 and MACD line is below the signal line. The pair is currently hovering around 5-DMA and a close below will see further downside.

Call Update: In our previous call, we had advised staying short. The pair almost hit TP1 on Tuesday.

Recommendation: Good to go short on break below 2462. SL: 2567. TP: 2356/2303.

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