Bitcoin Price Analysis: BTC/CNY Attempting To Recover?
Bitcoin price after a sharp downside move against the Chinese Yuan and the US Dollar found support. The BTC/CNY pair is currently recovering above 5300.
There is a new connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which is acting as a support area near 5350.
Bitcoin Price Support
Yesterday, we saw how there was a sharp downside move, which extended on the back of the PBOC investigation on Bitcoin. Later, the price made a downside dip towards 5000, where it found support.
The price started correcting higher from the 5000, and managed to move above the 23.6% Fib retracement level of the last decline from the 6400 high to 5005 low. It helped the price in gaining traction and moving further higher.
The upside move was such that the price managed to traded towards 5600. It later found resistance near the 38.2% Fib retracement level of the last decline from the 6400 high to 5005 low.
The price is currently moving down, but likely to find support near new connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) at 5350.
It looks like the price struggling to make a move above the 5550 level. On the downside, the highlighted trend line support holds the key, and may protect the downside move.
As long as the price is above it, there is a chance of a move higher. A break below it could ignite another bearish wave with a potential for a test of 5100.
The hourly RSI for BTC/CNY is was above the 50 level, but now moving lower. If it continues to move down, it may drag the price down too in the short term.
Chart Source – TradingView.com and data feed by BTCCHINA