Bitcoin Price Analysis: BTC/CNY To Break Higher Soon
Bitcoin price after a correction recently against the Chinese Yuan found bids, and it looks like the BTC/CNY pair may soon break a resistance for an upside move.
There is a bearish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which is about to be breached to open the doors for more gains towards 4850.
Bitcoin Price Resistance
The BTC to CNY after trading as high as 4989 moved down and traded towards the 4700 level. There was a low formed at 4679, where bitcoin buyers appeared and managed to push the price higher back above the 4740.
The price also cleared the 38.2% Fib retracement level of the last decline from the 4930 high to 4679 low. So, it looks like the price is positioning for an upside move as it is about to break a major resistance.
There is a bearish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which is currently acting as a resistance. Since the price has moved above the 50% Fib retracement level of the last decline from the 4930 high to 4679 low, the chances of a break is a lot of more.
The pace at which the price is trading at the moment is good, and may push the price higher. A break above the trend line resistance may push the price towards the 100 hourly simple moving average, which is also coinciding with the 76.4% Fib retracement level of the last decline from the 4930 high to 4679 low.
I think the price is currently in a bullish trend, and it may soon break the trend line resistance. The hourly RSI of BTC/CNY is currently above the 50 level, which is a positive sign for the bulls.
Chart Source – TradingView.com and data feed by BTCCHINA