BTC/USD is trading higher on Monday as it broke above Ichimoku Cloud. It is trading at 2219 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 4018.36

Kijun Sen: 3825.99

On the upside, the pair has broken above the 4400 mark and is now targeting 4504 (Upper Bollinger). A consistent break above would target 4550 (78.6% retracement of 4979.90 and 2972.01)/ 4679 (September 08 high). Further strength would see it testing 4700/4824 (113% extension of 1830 and 4480)/4979.90 (September 02 high).

On the flipside, support is seen at 4399 (1h 10-SMA) and any violation would drag the pair to 4324 (2h 20-SMA)/4294 (5-DMA). Further weakness would target 4242 (1h 100-SMA)/4125 (2h 200-SMA)/4092 (10-SMA)/3907(20-SMA).

Momentum studies: Bias remains bullish on the daily chart with the pair breaking above cloud, 5- and 10-DMAs biased sharply higher, RSI strong at 60, and MACD line above the signal line. However, caution is advised as stochs are at extremely overbought levels.

Call Update: We recommended going long in our previous call. The call is progressing well.

Recommendation: Hold for targets. SL: 3984. TP: 4444.

2. Watch out for a break above 4500 for scope for further upside.

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