BTC/USD is continuing its downtrend on Tuesday as its upside is capped by 5-DMA. It is currently trading at 2384 levels at the time of writing (Bitstamp).
Ichimoku analysis of daily chart:
Tenkan Sen: 2552
Kijun Sen: 2550
On the upside, resistance is seen at 2448 (38.2% retracement of 2980 and 2120) and a break above would target 2507 (5-DMA)/2576 (10-DMA). Further upward momentum would see the pair testing2630 (20-DMA)/2665 (trend line joining 2980 and 2789).
On the downside, strong support is seen at 2336 (50-DMA) and any violation would drag it to 2281 (61.8% retracement of 1850 and 2980)/2223 (Cloud Top). Further weakness would see it testing 2120 (June 15 low).
Momentum studies: Overall bias remains bearish with MACD line below signal line, RSI weak at 44, and the pair’s upside being capped by 5-DMA. Bias appears bearish in the hourly charts as well.
Bias is also bearish on the weekly chart with stochs and RSI on the verge of a rollover from the overbought zone.
Call Update: In our previous call, we had advised going short. The pair has hit TP1.
Recommendation: Bias lower, stay short. Lower the trailing stop to 2508. TP: 2281/2223.
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