FxWirePro: BTC/USD consolidates cloud breakout, good to go long on break above 1w 20-SMA

(Refer BTC/USD chart on Trading View)

BTC/USD has broken above Ichimoku cloud as it continues to recover from the lows of 5880 hit last month (Bitstamp).

The pair is currently trading at 7287 levels at the time of writing.

On the top side, the pair faces resistance at 7339 (1w 20-SMA) and a break above would see it testing 7497 (61.8% retracement of 8496.96 and 5880)/7550 (trend line joining 11688 and 8496.96)/7600/7696 (July 20 high).

On the down side, a break below 7205 (5-DMA) would drag the pair to 7135 (cloud top)/7061 (50-DMA)/7000. Further weakness would see it testing 6920 (21-EMA)/6831 (23.6% retracement of 5880 and 7125.88).

Bias appears bullish on the daily chart with RSI strong at 62, MACD line above the signal line, and stochs in overbought levels with no major sign of reversal. Intraday bias also appears bullish.

The pair faces stiff resistance at cloud bottom and further bullishness could be confirmed only on break above.

Recommendation: Good to go long on break above 1w 20-SMA. SL: 7050. TP: 7490/7550.