BTC/USD successfully closed above the 4000 mark after it fell to 3600 levels on August 22. It is currently trading at 4100 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 4040

Kijun Sen: 3524.84

On the upside, the pair faces immediate resistance at 4155 (10-DMA) and a break above would see it 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 4066 (5-DMA) and any violation would drag it to 3999 (4h 55-EMA)/3976 (2h 20-SMA). Further weakness would drag it to 3900 (August 19 low)/3854 (23.6% retracement of 1830 and 4480)/3800 (20-DMA)/3702 (trend line joining 1830 and 2615)/3600 (August 22 low).

Momentum studies: The pair is trading in a tight range at the time of writing. RSI is strong at 65, while bearish MACD crossover could be seen on the daily chart. The pair’s upside is capped by 10-DMA and a break above would see minor bullishness in the pair.

Recommendation: Wait for clear directional bias.

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