Bitcoin Price Analysis: BTC/CNY Gains Pace
Bitcoin price surged higher against the Chinese Yuan and the US Dollar. There was a solid gain in the BTC/CNY pair, and it may continue to trade higher.
Now, there is tiny connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which may act as a support if the price corrects lower.
Bitcoin Price Upside Ride
The BTC to CNY maintained its bullish bias and traded further higher. The BTC bulls were in control, and took the price above the 5900 handle. It looks like the price may continue to gain further momentum.
The recent upside move just stopped below the 6000 level at 5988. Let us see if there can be a test of 6000 or not moving ahead. The hourly chart of BTC/CNY clearly suggests that once there was a break above the 5600, there were solid gains.
So, there are chances of more upsides in the near term. Yesterday’s highlighted buying idea near the bullish trend line and the 23.6% Fib retracement level of the last wave from the 5540 low to 5672 high played well.
Now, if the price corrects higher, then there is a tiny connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA). It may act as a support on the downside along with the 23.6% Fib retracement level of the last wave from the 5550 low to 5988 high.
The overall bias is bullish for the BTC to CNY, and there can be a test of 6000 in the near term. We need to see how the price reacts once there is a test of the stated level.
The hourly RSI is well in the overbought readings, so there can be a minor correction in BTC/CNY.
Chart Source – TradingView.com and data feed by BTCCHINA