BTC/USD continues to trade in a close range on Wednesday as it is consolidating inside the Ichimoku Cloud. It is currently trading at 3937 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 3816.85

Kijun Sen: 3975.95

On the upside, the pair faces resistance at 3975 (50% retracement of 4979.90 and 2972.01) and a consistent break above would target 4019 (1w 5-SMA)/4102 (50-DMA). Further strength would target 4122 (September 18 high)/ 4212 (61.8% retracement of 4979.90 and 2972.01)/ 4282 (Cloud top)/4480 (August 17 high).

On the flipside, support is seen at 3881 (20-DMA) and a break below would target 3827 (10-DMA)/ 3776 (38.2% retracement of 1830 and 4979.90). Further weakness would drag it to 3728 (4h cloud top)/ 3600 (August 22 low)/3525 (90-EMA)/3404.

Momentum studies: On the daily chart, RSI is at 50, stochs are biased higher, and MACD line has crossed above the signal line, suggesting slightly bullish bias. Also, 5- and 10-DMAs are now biased higher. However, the pair is trading in a very tight range and bullishness could be confirmed only on a consistent break above 4100.

On the weekly chart, the pair’s upside is capped by 5-SMA and stochs are biased lower, while RSI is strong at 65.

Recommendation: Wait for clear directional bias.

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