BTC/USD is continuing rangebound trade on Thursday and is hovering around 10-DMA. It is currently trading at 4120 at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 4040

Kijun Sen: 3524.84

On the upside, a decisive break above 4136 (10-DMA) would see the pair testing 4200/4270 (161.8% extension of 891.33 and 2980)/4291 (78.6% retracement of 4480 and 3600). Further strength would target 4357 (161.8% extension of 751.34 and 2980)/4400 (August 15 high)/4480 (July 17 high).

On the reverse side, support is seen at 4080 (5-DMA) and any violation would drag it to 4028 (4h 55-EMA)/3989 (23.6% retracement of 2400 and 4480)/ 3900 (August 19 low). Further weakness would see it testing 3865 (20-DMA)/3800/3740 (trend line joining 1830 and 2615)//3700/3600 (August 22 low).

Momentum studies: RSI and stochs are biased higher on the daily chart, while MACD line is below the signal line. A consistent break above 10-DMA, coupled with a rollover of stochs and RSI to overbought levels, would confirm further bullishness in the pair.

Recommendation: Wait for clear directional bias.

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