Bitcoin Price Analysis: BTC/CNY Slowly Moving Higher
Bitcoin price is slowly moving higher against the Chinese Yuan, and it looks like the BTC/CNY pair could test the 4880 level soon.
Yesterday’s contracting triangle pattern looks like an ascending channel on the hourly chart of BTC/CNY (data feed via BTCCHINA), which may take the price higher.
Bitcoin Price Bullish
The BTC to CNY started correcting higher after trading towards the 4520 level, as highlighted in yesterday’s post as well. I mentioned that the price may gain further, and it looks like the price might continue to move higher.
Yesterday, I highlighted a contracting triangle pattern on the hourly chart of BTC/CNY (data feed via BTCCHINA). However, it looks like it is not a contracting triangle pattern, but it’s an ascending channel, which may take the price higher in the short term.
The best part is that the price is now above a couple of important hurdles. First, the price moved above the 38.2% Fib retracement level of the last decline from the 5125 high to 4523 low. Second, the price also moved above the 100 hourly simple moving average.
So, there are a few positive signs, which suggest that the BTC may gain traction and move higher. On the upside, a break and close above the 50% Fib retracement level of the last decline from the 5125 high to 4523 low is needed for the BTC buyers to gain momentum.
Moreover, they also need to overcome the channel resistance area. It looks like the price may soon move higher for a move towards the 4880 level at least where sellers may appear. The hourly RSI is now well above the 50 level, which means there is a chance of the BTC bulls stepping up the momentum going forward.
Chart Source – TradingView.com and data feed by BTCCHINA