Bitcoin Price Analysis: BTC/CNY Surging Higher
Bitcoin price blasted higher the Chinese Yuan and the US Dollar. It looks like the BTC/CNY pair has cleared a major hurdle and buying dips paid off.
Yesterday’s minor bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) played well and pushed the price higher above 5600.
Bitcoin Price Uptrend
The BTC to CNY surged further higher during the past few hours and registered good gains. The most important point was the fact that there was a break above the 5600 resistance.
I was looking for an upside break for a long time, and we finally got it. There was a minor dip yesterday, but the bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) acted as a support area near 5580 and pushed the pair higher.
Moreover, the 38.2% Fib retracement level of the last wave from the 5430 low to 5598 high also acted as a support and helped the BTC buyers to gain traction. There was a solid rise, pushing the price above the 5600 resistance.
A new weekly high was formed near 5672, and it looks like the price may continue to trade higher. If there is a minor correction from the current levels, then an initial support is near the 23.6% Fib retracement level of the last wave from the 5540 low to 5672 high.
However, the same trend line support is intact, and may continue to act as a buying area in the short term near 5600. So, if you are looking to buy dips, then wait for a correction near the trend line. The 100 hourly simple moving average is also just around the trend line to act as a support.
The hourly RSI is currently reaching the overbought readings with no sign of a correction in BTC/CNY.
Chart Source – TradingView.com and data feed by BTCCHINA