Bitcoin Price Analysis: BTC/CNY Support Is Near 5900
Bitcoin price managed to remain above the support levels against the Chinese Yuan and the US Dollar. The BTC/CNY pair may look to trade higher towards the 6300 level.
This week’s highlighted bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) remains active, and may continue to provide support near 5900.
Bitcoin Price Upside
The positive signs for Bitcoin price remained intact, as there was no close below the 5900 support against the CNY. The BTC to CNY remained supported, and currently looks set for an upside move in the short term.
Recently, there was a dip below the 5900 support level, as the price moved as low as 5717 where somehow buyers managed to push the price back higher. There was no proper close below the mentioned support area.
The most important and encouraging point is the fact that this week’s highlighted bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) is still acting as a major support area, and preventing a downside move.
Moreover, the 38.2% Fib retracement level of the last wave from the 5004 low to 6311 high also acted as a support area, and helped the price in finding bids. Moreover, the 100 hourly simple moving average also played its part around the trend line near 5800 and stopped the downside move.
The price is now moving back higher, but facing sellers near the 61.8% fib retracement level of the last decline from the 6300 high to 5717 low.
I think as long as the price is above the trend line support and 5900, it remains supported, and may continue to trade higher.
The hourly RSI for BTC/CNY remained above the 50 level, suggesting a bullish bias.
Chart Source – TradingView.com and data feed by BTCCHINA