BTCUSD price sold off yesterday but is still inside its ascending channel formation. Price looks ready to test support around $580 and might bounce back to the resistance at $590 or higher.
The 100 SMA is still above the longer-term 200 SMA so the path of least resistance is to the upside. Also, the 100 SMA is holding as dynamic support at the moment, although a larger pullback could still find a floor at the 200 SMA dynamic inflection point.
RSI is on the move down to indicate that sellers are in control of BTCUSD price for now. Stochastic is also heading south so bitcoin could follow suit and go for a lower test of support around $575. A break below this level could signal that a reversal is brewing.
Dollar strength has been in play recently, boosted by US equity gains and a bit of safe-haven buying on weaker commodity prices. China is seeing a slowdown in fuel demand since it has also been producing its own, increasing the global supply glut and weighing on prices.
http://www.forexminute.com/btcusd-price-technical-analysis-bullish-channel-test/
