Bitcoin Price Analysis: BTC/CNY To Gain Momentum
Bitcoin price remains in an uptrend against the Chinese Yuan and the US Dollar. The BTC/CNY pair is currently trading positive, and positioning for more gains.
There is a new bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which can be considered as a buy zone near 5420-40.
Bitcoin Price Bullish
The BTC to CNY maintained its bullish tone during the past 24 hours, as it mostly traded higher and buyers bought back every minor dip. The price is currently above the 5400 level, which means it remains support for more gains.
On the downside, there is a major support at 5420-00. A new bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) is positioned with the stated levels to provide bids if the pair declines.
Moreover, the 100 hourly simple moving average is also around the same trend line, suggesting the importance of the support at 5420-00. I think as long as the price is above 5400, it remains in an uptrend and likely to gain further momentum.
During the recent upside, the price broke the 50% Fib retracement level of the last decline from the 5520 high to 5349 low. However, the upside move faced sellers near 5460, which is just above the 61.8% Fib retracement level of the last decline from the 5520 high to 5349 low.
However, there is a high possibility of BTC/CNY gaining momentum, and breaking the highlighted short-term resistance area. The most important resistance on the upside is near 5500-20 where the BTC buyers struggled on many occasions.
The hourly RSI is currently above the 50 level, and calling for a buy dips scenario in BTC to CNY in the near term.
Chart Source – TradingView.com and data feed by BTCCHINA