Bitcoin Price Analysis: BTC/CNY Was Perfect Buy On Dips
Bitcoin price after a tiny correction the Chinese Yuan and the US Dollar found support, and both BTC/USD and BTC/CNY pairs traded higher.
Yesterday’s highlighted bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) acted as a perfect support and pushed the price higher.
Bitcoin Price Bullish
The BTC to CNY was seen trading with a positive tone during the past 24 hours. There was a minor dip yesterday in the BTC/CNY pair, which found support on the downside around 4910.
The most important point is the fact that yesterday’s bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) acted as a major support area. And, it was the main reason why the BTC buyers were able to take the price higher.
The price found support near the 23.6% Fib retracement level of the last wave from the 4680 low to 4920 high. The upside move was very strong, as the price cleared the 5000 handle, and traded as high as 5334.
It looks like the BTC/CNY pair has formed a nice bullish trend, and any corrections from the current levels may be considered as buying opportunity. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the 4680 low to 4334 high.
However, the price may even find support near the 5200 level since it was a resistance earlier. There is even a chance that the price won’t even correct lower that much and continue to trade higher since the current trend is likely to favor more gains in the short term.
The hourly RSI of BTC/CNY is well in the overbought area, which is the only reason there is a chance of a correction.
Chart Source – TradingView.com and data feed by BTCCHINA