BTC/USD broke above the 4000 mark on Monday and hit 4122 levels. However, it failed to hold its strength and is currently trading at 3940 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 3674.83

Kijun Sen: 3975.95

On the upside, the pair faces resistance at 3995 (1h 20-SMA) and a break above would target 4044 (21-EMA)/4130 (trend line joining 4979.90 and 4679.90). Further strength would see it testing 4207 (20-DMA)/4300/4480 (August 17 high)/4550 (78.6% retracement of 4979.90 and 2972.01).

On the flipside, support is seen at 3879 (10-DMA) and any violation would drag the pair to 3782 (cloud top)/3600 (August 22 low). Further weakness would drag it to 3463 (September 17 low)/3404 (50% retracement of 1830 and 4979.90).

Momentum studies: On the daily chart, RSI is weak at 48 and MACD line is below the signal line. However, stochs are biased higher and the pair is holding above the Ichimoku Cloud.

On the 4-hour chart, the pair is showing a dip after it ran into resistance at 100-SMA. Bias appears slightly bullish with RSI at 55 and MACD line above the signal line.

Recommendation: Watch out for a break above 20-DMA for scope for further upside.

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