BTC/USD is continuing its choppy trade on Monday as seen from the past few session. It is currently trading at 2518 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2506.90

Kijun Sen: 2454.50

On the upside, the pair is hovering around 50-DMA and a consistent break above would run into resistance at 2534 (10-DMA)/2546 (trend line joining 2980 and 2639.47). A decisive breach of trend line resistance would see further bullishness, targeting 2605 (4-h 200-SMA)/ 2651 (61.8% retracement of 2980 and 2120)/2682 (78.6% retracement of 2789 and 2291).

On the downside, support is seen at 2475 (trend line joining 1850 and 2120) and a break below would drag it to 2415 (50% retracement of 1850 and 2980)/2375 (61.8% retracement of 2120 and 2789). Further weakness would see it testing 2281/2120 (June 15 low).

Momentum studies: On the daily chart, RSI is at 49 and MACD line is below the signal line. On the 4-hour chart, RSI is flat at 45 and MACD line is below the signal line.

On the weekly chart, the pair is hovering around 5-SMA. RSI continues to hold above 70. However, MACD line is above the signal line with fading upward momentum. Moreover, three consecutive dojis along with the turning of 5-SMA suggest scope for further downside. 10-SMA is a major support for the pair and any bearishness could be confirmed only below this level.

Recommendation: Good to go short on break below 2475. SL: 2605. TP: 2375/2281.

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