BTC/USD broke below the major trend line support on Monday and dropped to 2242 levels. It is currently trading at 2327 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2441

Kijun Sen: 2515.81

On the upside, immediate resistance is seen at 2359 (1h 20-SMA) and a break above would target 2412 (4h 10-SMA)/2441 (5-DMA). Further strength would see it testing 2482 (convergence of cloud top and trend line joining 1850 and 2120)/2550 (50% retracement of 2980 and 2120).

On the downside, support is seen at 2263 (61.8% retracement of 1850 and 2933) and any violation would target 2182 (38.2% retracement of 891.33 and 2980)/2120 (June 15 low). Further weakness would drag it to 2092 (100-EMA)/1984 (100-DMA).

Momentum studies: On the daily chart, RSI is holding at 40, MACD line is below the signal line, and stochs are biased lower. Bias appears weak on the intraday charts as well.

On the weekly chart, the pair breached the 10-SMA support and is trading below this level. RSI appears on the verge of a rollover from the overbought zone, stochs are biased lower, and MACD line is above the signal line with fading upward momentum.

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

Recommendation: Stay short. Lower the trailing stop to 2482. TP: 2182/2120.

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