Bitcoin Price Analysis: BTC/CNY Rising Streak Continues
Bitcoin price moved further higher against the Chinese Yuan and the US Dollar. The BTC/CNY pair made a new high above 6200 and looks set for more gains.
This week’s highlighted bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) is still active and acting as a support on the downside near 5900.
Bitcoin Price Trend
There was a slow rise in Bitcoin price, as it moved past the 6000 resistance against the CNY. The BTC to CNY made a nice upside move towards 6300 where it found sellers and started a minor correction.
Earlier, the price made a minor downside move, but this week’s highlighted bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) acted as a support near 5800 and pushed the price higher.
During the upside move, the price managed to break the 61.8% Fib retracement level of the last decline from the 6400 high to 5005 low. So, it helped the price to gain further traction and move higher.
The price traded close to the last swing high of 6400 before starting a correction. The BTC/CNY pair is currently moving down, and likely to test the 23.6% Fib retracement level of the last wave from the 5004 low to 6311 high.
However, the most important support on the downside is near the trend line support at 5800, and it looks like the pair remains buy on dips. The 100 hourly simple moving average is also near 5800, which is a positive sign.
If the price trades back higher, breaks the last swing high of 6311, then more gains are likely in the short term towards 6500.
The hourly RSI for BTC/CNY is still above the 50 level, which is a positive sign.
Chart Source – TradingView.com and data feed by BTCCHINA