Bitcoin Price Analysis: BTC/CNY Breaks Range Trade
Bitcoin price finally managed to climb higher against the Chinese Yuan and the US Dollar, and it looks like the BTC/CNY pair remains buy on dips in the short term.
Yesterday’s highlighted range pattern on the hourly chart of BTC/CNY (data feed via BTCCHINA) was broke at 5190 to clear the way for more gains.
Bitcoin Price Upside
The BTC to CNY was seen trading in a range for more than two days, but finally there was an upside move yesterday. The price broke the 5200 resistance area and moved higher.
We have been following a range pattern with range resistance is at 5200 and the support lies at 5125 for some time now and were waiting for a break. The price surged higher and traded above the 5225 level to register intraday gains.
During the upside move, the price broke the 100 hourly simple moving average and the 50% Fib retracement level of the last decline from the 5325 high to 5087 low. However, the upside was stalled around the 61.8% Fib level of the same wave.
Moreover, there is a monster bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA), which acted as a hurdle and stopped the upside move. Yesterday, I highlighted the same trend line and mentioned that it may act as a resistance.
The price did find sellers and currently consolidating. It may move down and test the 23.6% Fib retracement level of the last wave from the 8090 low to 5252 high. One may consider buying dips in the short term as long as the price is above the 100 hourly simple moving average.
The hourly RSI is currently well above the 50 level, which is a positive sign for the BTC/CNY pair.
Chart Source – TradingView.com and data feed by BTCCHINA