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FxWirePro: BTC/USD retraces from lows of 14239, bias bullish, stay long

Bears appear to have flexed their muscles as BTC/USD hit a fresh all-time high at 16666 levels. However, bulls came in and drove the pair to near 16000 levels where is currently trades (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 12833.33

Kijun Sen: 11256.33

On the topside, a decisive break above 16057 (1h 10-SMA) would see the pair testing 16600 (161.8% extension of 2972.01 and 11395)/17000. Further strength would target 17306 (161.8% extension of 1830 and 11395)/17886 (161.8% extension of 891.33 and 11396)/18000.

On the reverse side, the pair has found support near 14890 (2h 20-SMA) and a break below would drag it to 14370 (1h 50-SMA)/14000. Further weakness would see it falling to 13882 (5-DMA)/13631 (4h 20-SMA)/13036 (2h 50-SMA)/12491 (2h 90-EMA)/12160 (trend line joining 4979.90 and 11800.01).

Momentum studies: On the daily chart, major moving averages remain biased higher and MACD line is above the signal line. Also, the longer lower wick of the latest candle suggest high buying pressure. Overall bias remains bullish with no sign of reversal.

However, RSI and stochs at overbought levels call for high caution.

Call Update: We recommended going long in our previous call. Both the targets have been hit.

Recommendation: 1. Book partial profits, stay long.

2. Good to go long on dips around 15890/15910.

Trail SL to 12100. TP: 16600/17000/17300

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

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