Bitcoin Price Analysis: BTC/CNY Remains Supported
Bitcoin price broke higher against the Chinese Yuan and the US Dollar yesterday, but there was no momentum. The BTC/CNY pair is currently above a major support, eying gains.
Yesterday’s highlighted contracting triangle pattern formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) was broke for a move towards the 5360 level.
Bitcoin Price Support
The BTC to CNY after consolidating for some time around the 5280 level moved higher. There was a nice upside move, which took the price above the 5300 level.
The most important point was that the price broke yesterday’s highlighted contracting triangle pattern formed on the hourly chart of BTC/CNY (data feed via BTCCHINA).
Moreover, the 38.2% Fib retracement level of the last decline from the 5440 high to 5227 low was also broken. The price moved higher, but could register any major gains.
There were offered presented around the 5350 level, which was also around the 50% Fib retracement level of the last decline from the 5440 high to 5227 low. Another point to note is that there was no proper close above the 100 hourly simple moving average.
As a result, there was a downside move, taking the price towards the 5300 handle where the triangle support trend line acted as a barrier for the sellers and preventing the downside move.
The highlighted trend line support holds the key, and as long as the price is above it, there is a chance of it gaining pace one more time for a move towards 5350. However, a break above the 100 hourly simple moving average is needed for the BTC bulls to gain pace.
The hourly RSI is below the 50 level, which is the only bearish sign at the moment for BTC to CNY.
Chart Source – TradingView.com and data feed by BTCCHINA