BTC/USD holds well above 5-DMA, good to go long on dips

BTC/USD is trading higher on Friday as it broke above the 2800 mark and is currently trading at 2840 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 2719.40

Kijun Sen: 2384

On the upside, the pair now faces resistance at 2920 (trend line joining 2980 and 2938) and a break above would target 2980 (June 12 high)/3091 (113% retracement of 2980 and 2120). Further strength would see it testing 3129 (113% retracement of 2980 and 1830)/3200.

On the reverse side, support is seen at 2770 (trend line joining 1830 and 2622) and any violation would drag it to 2725 (4h 50-SMA)/2676 (23.6% retracement of 1830 and 2938)/ 2615 (August 01 low). Further weakness would target 2549 (50-DMA)/ 2483 (Cloud top)/2400 (July 26 low).

Momentum studies: Bias appears slightly bullish on the daily chart with RSI at 57, MACD line above the signal line, and stochs biased higher. Upward momentum remains strong on the hourly charts as well.

Similar is the case on the weekly chart – RSI is strong at 68 and stochs are on the verge of a rollover into the overbought zone.

Recommendation: Good to go long on dips around 2830/2835. SL: 2725. TP: 2920/2980

Source http://www.econotimes.com/FxWirePro-BTC-USD-holds-well-above-5-DMA-good-to-go-long-on-dips-838441