BTC/USD skyrocketed on Thursday, driven by the reports of BIP 91 lock-in. It stopped short of its all-time high 2980 levels and hit 2938 levels. The pair is currently trading in the red at 2758 levels at press time (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2384

Kijun Sen: 2384

On the upside, the pair is likely to face resistance at 2795 (78.6% retracement of 2980 and 2120) and a break above would target 2876 (upper Bollinger)/ 2938 (July 20 high)/ 2980 (June 12 high). Further strength would see it testing 3091/3129 (113% retracement of 2980 and 1830).

On the reverse side, support is seen at 2676 (23.6% retracement of 1830 and 2938) a break below would drag it to 2629 (trend line joining 1850 and 2120)/2577 (Cloud top). Further weakness would drag it to 2537 (50-DMA)/ 2413 (20-DMA)/2372 (trend line joining 2980 and 2639)/2237 (Cloud bottom).

Momentum studies: Bias appears to have turned bullish on the daily chart with RSI at 59, MACD line above the signal line, and stochs are biased higher.

However, some downside could be seen on the hourly charts. On the 1-hour chart, the pair is trading just above 20-SMA and any violation could drag it lower.

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

Recommendation: Wait for clear directional bias.

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