BTC/USD is trading in a tight range on Friday and hovering around 5-DMA at the time of writing. It is currently trading at 2342 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2426.77

Kijun Sen: 2514.27

On the upside, a close above 2340 (5-DMA) would see the pair testing 2417 (2h 90-EMA)/2445 (10-DMA). Further strength would see it testing 2482 (convergence of cloud top and trend line joining 2980 and 2639.47)/2528 (convergence of 50-DMA and trend line joining 1850 and 2120).

On the downside, support is seen at 2281 (61.8% retracement of 1850 and 2980) and any violation would target 2239 (July 12 low)/2162 (90-EMA). Further weakness would drag it to 2120 (June 15 low)/ 2091 (78.6% retracement of 1850 and 2980)/2020 (100-DMA).

Momentum studies: Overall bias remains weak on the daily chart with RSI weak at 42 and the MACD line below the signal line. Bias remains weak on the weekly chart as well. The narrowing of the Bollinger Bands suggests an upcoming change in trend.

Call update: We recommended staying short in our call on July 11.

Recommendation: Hold for targets. SL: 2482. TP: 2182/2120.

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