BTCUSD appears to be moving sideways, finding support at $620 and resistance at $680. Price is nearing the top of the range at the moment, ready to make a bounce or a break.
The 100 SMA is above the 200 SMA at this point so the path of least resistance is to the upside. This suggests that a break past the top of the range could be seen, likely taking BTCUSD up to its recent highs around $775. However, stochastic is on the move down so BTCUSD might follow suit.
RSI is also heading south and indicating that sellers are taking control of price action. This means that bitcoin could make another test of its range support or perhaps even go for a breakdown if selling pressure is strong enough. In that case, bitcoin could find a floor at the next area of interest around $550-580.
Data from the US economy came in stronger than expected yesterday, with the Chicago PMI indicating a strong return to industry growth. Risk appetite also appears to have returned with talk of additional stimulus from major central banks, likely to help keep the global economy supported throughout the Brexit process.
In the UK, Theresa May has emerged as the frontrunner in the leadership race and she has pointed out that they will not invoke Article 50 until they have clearly outlined a plan on how to go about exiting the EU. This could keep a bit of uncertainty out of the financial markets for the time being, leading traders to invest in traditional markets like currencies and equities.
Still, any indication that risk aversion and uncertainty are set to return would drive up demand for bitcoin once more. Earlier today, PMI readings from China came in mixed, with the Caixin version showing a sharp decline and likely leading investors in the country to pursue other investments once more.