Bitcoin Price Analysis: BTC/CNY Upsides To Continue

Bitcoin Price Analysis

Bitcoin price surged higher against the Chinese Yuan and the US Dollar, and it looks like the BTC/CNY pair is poised for more gains with support at 6700.

There is a connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with support at 6700 on the downside.

Bitcoin Price Trend

There was a lot of strength noted in Bitcoin price against the Chinese Yuan as it moved past the 6400 resistance. Once the price succeeded in trading above the stated level, there was a nice upside ride, taking the price above the 6500.

There was a new intraday high was formed at 6895, and it looks like the price may continue to trade higher. The price is currently correcting lower, and already moved below the 23.6% Fib retracement level of the last wave from the 6350 low to 6895 high.

However, there is a connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with support at 6700. Moreover, the 38.2% Fib retracement level of the last wave from the 6350 low to 6895 high is also aligned with the trend line.

So, we can say that there is a major support at 6700, which can be seen as a buy zone. Below it, the most important support can be 6400. It was a resistance earlier, and now it could act as a support at 6400-6450.

So, if the price corrects lower, there is a chance of buyers appearing and preventing downsides near 6700 and 6600. On the upside, a push above 6800 might take the price towards 7000.

The hourly RSI for BTC/CNY is correcting from the overbought levels, and signaling a bullish bias in the short term.

Happy Trading!

Chart Source РTradingView.com and data feed by BTCCHINA

Aayush Jindal

Aayush has spent over EIGHT years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets.

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