Bitcoin Price Analysis: BTC/CNY Trend Change Noted
Bitcoin price after a topping pattern against the Chinese Yuan and the US Dollar traded lower, and it looks like the BTC/CNY pair has changed the trend to bearish.
There was a major support formed at 5200 on the hourly chart of BTC/CNY (data feed via BTCCHINA), which was broken to ignite a downside move.
Bitcoin Price Bearish
The BTC to CNY traded as high as 5400 and then started to face sellers. There were around two attempts to break the stated level, which finally ignited a downside move.
We can say that there was a double top pattern formed at 5400, which played a major for the market sentiment and pushed the BTC/CNY pair down. During the downside move, there were a few important breaks.
First, the price broke an important support at 5200, which took the price towards the 50% Fib retracement level of the last wave from the 4680 low to 5395 high. There was also a close below the 100 hourly simple moving average of BTC/CNY (data feed via BTCCHINA).
The price traded as low as 5005 and currently attempting to correct higher. During the upside move, there was a break above the 23.6% Fib retracement level of the last decline from the 5400 high to 5005 low.
The pair may face a major resistance on the upside near 5200. It was a support earlier and may now act as a resistance. Moreover, the 50% Fib retracement level of the last decline from the 5400 high to 5005 low is also around the same level.
So, one may even consider selling near 5200 with a stop above the 100 hourly SMA. The hourly RSI is currently recovering from the oversold level, but remains below the 50 mark.
Chart Source – TradingView.com and data feed by BTCCHINA