BTCUSD recently broke past a descending triangle formation and is now cementing its climb. A bullish channel can be seen on the 1-hour time frame and price is close to testing support at $600.
Applying the Fib tool on the latest swing high and low shows that the 61.8% retracement level lines up with the channel support, adding to its strength as a floor. The 100 SMA is above the longer-term 200 SMA, which means that the path of least resistance is to the upside. BTCUSD could still test the dynamic support at the 200 SMA, which is closer to the channel bottom.
RSI is heading south to indicate that sellers are in control of price action for now. Stochastic is also moving lower so BTCUSD price could follow suit, possibly even leading to a break below the channel support. In that case, price could be in for a selloff to the next floor at $595.
Liquidity has been low in the cryptocurrency arena lately as traders are presumably more active in other financial markets such as stocks and commodities. US equities just made a strong recovery on the return of risk appetite and reduced uncertainties after the US presidential debate earlier in the week.
Also, investors are likely paying more attention to the rally in crude oil after OPEC leaders confirmed that they agreed on cutting output. However, the size of the caps per member has yet to be determined, possibly by their next meeting in November.
Meanwhile, FOMC members have continued to reinforce the idea of a Fed rate hike before the end of the year. Officials George, Mester, and Yellen have taken the podium yesterday, bringing a bit of a boost for the US dollar.
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