Bitcoin Price Analysis: BTC/CNY Consolidating Losses
Bitcoin price after a decline this past week against the Chinese Yuan and the US Dollar started consolidating. The BTC/CNY pair is now back above 6600 and range trading.
The price during the recent recovery traded as high as 6850 where it found resistance, and later moved down to break a bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) at 6800.
Bitcoin Price Resistance
This past week we saw a heavy downside move in Bitcoin price against the Chinese Yuan, as it moved down towards 6450. The BTC to CNY later managed to gain bids and started recovering.
The price traded higher and moved above the 6600 level to trade as high as 6850 where it found resistance. The BTC buyers tried a couple of times to break the stated level, but failed.
As a result, there was a downside move below 6800 and the price broke a bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA). However, the downside move was not strong, which means the trend line break at 6800 can be ignored.
The price traded lower and found support near the 23.6% Fib retracement level of the last wave from the 6450 low to 6850 high. The price is comfortably placed above the stated level, but somehow struggling.
On the upside, the price is facing sellers near 6850, which also coincides with the 100 hourly simple moving average. A break above it is needed for the price to gain bids for a move towards the 7000 level.
On the downside, a break below 6730 could take the price towards the 50% Fib retracement level of the last wave from the 6450 low to 6850 high.
The hourly RSI for BTC/CNY is currently below the 50 level, which is a negative sign.
Chart Source – TradingView.com and data feed by BTCCHINA