BTC/USD surged to a fresh high at 17270 levels on December 11 before it closed at 16470 levels. It is currently trading at 16352 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 14060

Kijun Sen: 12350.77

On the topside, a consistent break above 16426 (1h 20-SMA) would target 16600 (161.8% extension of 2972.01 and 11395)/17000 levels/17306 (161.8% extension of 1830 and 11395). Further strength would see it testing 17588 (Upper Bollinger)/17886 (161.8% extension of 891.33 and 11396)/18000.

On the reverse side, support is seen at 16059 (4h 10-SMA) and any violation would drag the pair to 15795 (2h 20-SMA)/15450 (7-DMA). Further weakness would see it testing 15192 (2h 50-SMA)/14505 (23.6% retracement of 5555.55 and 17270)/14278 (10-DMA)/14042 (4h 50-SMA).

Momentum studies: Bias remains bullish on the daily chart – RSI is strong at 78, MACD line is above the signal line, and the pair is holding well above 10-DMA, which is biased higher. However, 5-DMA is showing a slight turn at the time of writing.

A consistent break above 16600 levels will see further upside.

Call Update: We recommended going long in our previous call. The pair has almost hit all the targets.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest