Bitcoin Price Analysis: BTC/CNY Upside Surge
Bitcoin price surged higher against the Chinese Yuan and the US Dollar. The BTC/CNY pair was a perfect buy yesterday and remained in the bullish zone.
Yesterday’s highlighted connecting bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) acted as a perfect buy area for an upside move.
Bitcoin Price Upsides
The BTC to CNY made a nice upside move recently, and surged higher above the 6600 handle and the 6800 resistance. We were looking for more gains in the BTC/CNY pair, and it was fulfilled recently.
The best part is that fact that yesterday’ highlighted connecting bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) was a perfect buy zone for the bulls. It acted as a support area near 6400 and pushed the price higher.
The 38.2% Fib retracement level of the last wave from the 6150 low to 6527 high also acted as a support and helped the BTC buyers in gaining momentum.
There was a nice upside move, taking the price above the 6800 resistance for a new monthly high of 6879. The price is currently correcting lower, and may trade near the 23.6% Fib retracement level of the last wave from the 6150 low to 6879 high.
The overall trend for the BTC/CNY pair is bullish, and on the downside there many support levels on the downside. Moreover, the same connecting bullish trend line on the hourly chart is at 6650 to act as a buy area if the pair corrects lower. So, if you are looking to enter a buy trade, then consider it near the same trend line support at 6650 with a stop below it.
The hourly RSI for BTC/CNY is around the overbought levels, calling for a correction.
Chart Source – TradingView.com and data feed by BTCCHINA