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FxWirePro: BTC/USD plummets after hitting all-time high 4480, bias lower, good to go short on rallies

BTC/USD plummeted to 3900 levels after it hit a fresh all-time high at 4480 levels on July 17. It continues to trade in the red on Monday around 4000 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 3895.58

Kijun Sen: 3440

On the upside, a consistent break above 4036 (23.6% retracement of 4480 and 3900) would see the pair testing 4109 (5-DMA)/4129 (10-DMA). Further strength would target 4151 (1h 100-SMA)/4200/4258/4300/4355/ 4400 (August 15 high)/4480 (July 17 high).

On the reverse side, support is seen at 3951 (trend line joining 3800 and 3900) and any violation would drag it to 3900 (August 19 low)/3854 (23.6% retracement of 1830 and 4400). Further weakness would target 3800 (August 15 low)/3773 (4h 100-SMA)/3685 (38.2% retracement of 2400 and 4400)/3666 (20-DMA)/3600 (trend line joining 1830 and 2615).

Momentum studies: On the daily chart, RSI and stochs have rolled over from the overbought levels and MACD is on the verge of a bearish crossover. Overall bias appears bearish.

Recommendation: Good to go short on rallies around 4020. SL: 4130. TP: 3900/3800.

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