Bitcoin Price Analysis: BTC/CNY Started Correction
Bitcoin price after a move higher, found sellers, and started correcting lower against the Chinese Yuan and the US Dollar. The BTC/CNY pair may correct lower.
Yesterday’s highlighted connecting bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) was broken to start a correction wave.
Bitcoin Price Correction
The BTC to CNY looks like made a short-term top near the 6957 high, as there was no push above the stated level. The price failed to move towards the 7000 handle, and as a result, a correction wave was started.
The price started correcting lower, and moved below the 23.6% Fib retracement level of the last wave from the 6150 low to 6879 high. However, the most important part is the fact that the price moved below yesterday’s highlighted connecting bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA).
The price is currently struggling to gain back traction, and trading near the 100 hourly simple moving average. If the current trend continues, there is a chance that the BTC/CNY pair may extend the current downside wave.
The next major stop on the downside is near the 50% Fib retracement level of the last wave from the 6150 low to 6879 high at 6550. The stated level is a major support area. The 6550 acted as a resistance earlier, and may now act as a support. If there is a close below the 100 hourly simple moving average, then there are chances of more losses. The price may come under selling pressure in that case to ignite more corrections.
The hourly RSI for BTC/CNY has moved sharply below the 50 level, which is a sign that the pair may correct lower in the short term.
Chart Source – TradingView.com and data feed by BTCCHINA