BTC/USD is trading higher on Wednesday and has broken above 7400 levels. It is currently trading at 7416 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 6831.40

Kijun Sen: 6345.68

On the upside, resistance is seen at 7500 levels and a break above would target 7590 (November 04 high)/7698 (upper Bollinger). Further strength would see it testing 7714 (trend line joining 4979.90 and 7590)/7819 (241.4% retracement of 4979.90 and 2972.01).

On the downside, support is seen at 7281 (2h 50-SMA) and a break below would drag it to 7181(1h 50-SMA)/7030 (4h 50-SMA). Further weakness would see it testing 6975 (10-DMA)/6651 (4h 90-EMA)/6500 (23.6% retracement of 2972.01 and 7590).

Momentum studies: Bias remains bullish on the daily chart with RSI strong at 73, MACD line above the signal line, and major moving averages biased higher. Bias appears bullish on the intraday charts as well.

Recommendation: Good to go long on dip around 7375/7380. SL: 7175. TP: 7700.

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