BTC/USD is trading above 4500 levels as it broke above the trend line joining 4979.90 and 4453. It currently trading at 4551 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 4381.34

Kijun Sen: 3798.36

On the upside, a consistent break above 4550 (78.6% retracement of 4979.90 and 2972.01) would see the pair testing 4679 (September 08 high)/4744 (Upper Bollinger). Further strength would target 4855 (127.2% extension of 2972.01 and 4453)/4979.90 (September 02 high).

On the flipside, support is seen at 4526 (4h 10-SMA) and any violation would see it testing 4449 (5-DMA)/4387 (10-DMA). Further weakness would target 4323 (trend line joining 4979.90 and 4453)/4244 (Cloud top)/4198 (50-DMA)/4138 (50-DMA).

Momentum studies: Bias appears bullish on the daily chart as MACD line is above the signal line, RSI is strong at 61, and 5- and 10-DMAs biased sharply higher. However, caution is advised as stochs are in the overbought zone.

Also, some weakness could be seen on the hourly charts. On the 2-hour chart, the pair is trading below 10-SMA, RSI has rolled over from the overbought levels and is biased lower, stochs are on the verge of a rollover from the overbought zone, and MACD is on the verge of a bearish crossover on the signal line.

Recommendation: Wait for clear directional bias.

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