Bitcoin Price Analysis: BTC/CNY To Extend Gains
Bitcoin price recovered well against the Chinese Yuan and the US Dollar, and it looks like the BTC/CNY pair may attempt to break the last swing high at 7500.
There is a nice bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with support at 7450 on the downside.
Bitcoin Price Uptrend
Recently, there was a sharp upside rejection near the 7500 level in Bitcoin price against the Chinese Yuan. The BTC to CNY turned lower and traded as low as 7150 where the bulls appeared and protected any further downsides.
The price moved back higher and already broke the 50% Fib retracement level of the last decline from the 7500 high to 7150 low. So it is a positive, and suggests that the price might trade back higher in the short term.
There is a support formed on the downside near 7450, as there is a nice bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA). If the price corrects lower from the current levels, it may find support near 7450.
If all goes well, the price could trade further higher. It is already trading near the last swing high of 7500. A break above it could take the price towards the 1.236 extension of the last decline from the 7500 high to 7150 low.
So, the next hurdle for the BTC buyers seem to be at 7639. If you are looking to enter a buy trade, then consider it on dips near the trend line support at 7450 with a stop of a close below it.
The hourly RSI for BTC/CNY is about to reach the overbought levels, but there are no major signs of a correction just yet.
Chart Source – TradingView.com and data feed by BTCCHINA