Bitcoin Price Analysis: BTC/CNY Remains Supported

Bitcoin Price Analysis BTC CNY

Bitcoin price after a decline recently against the Chinese Yuan and the US Dollar started correcting higher. The BTC/CNY pair remains supported near 6700.

It looks like there is a connecting bullish trend line formed on the 4-hours chart of BTC/CNY (data feed via BTCCHINA), which has a support at 6650, holding the downside.

Bitcoin Price Trend Line Support

This week was mostly silent for Bitcoin price against the Chinese Yuan, as there were only range moves above the 670i support.

Recently, we saw a dip in Bitcoin price against the CNY, as there was a decline to 6440. Later, the price found support and started to recover slowly. A move above 6700 was noticed, as the price succeeded in breaking the 23.6% Fib retracement level of the last decline from the 7550 high to 6440 low.

However, the price was seen struggling near the 6850 resistance area and the 100 hourly simple moving average. Both are acting as a major resistance along with the 38.2% Fib retracement level of the last decline from the 7550 high to 6440 low.

However, the price remains supported on the downside near 6700 and 6650, as there is a connecting bullish trend line formed on the 4-hours chart of BTC/CNY (data feed via BTCCHINA).

So, any setbacks on the downside remains supported, and it won’t be easy for the price to break it for more losses towards 6600.

However, on the upside, the price needs to clear the 100 hourly simple moving average at 6900 for more gains. Only a break above it could call for a test of the 50% Fib retracement level of the last decline from the 7550 high to 6440 low at 7012.

The hourly RSI for BTC/CNY is moving higher and already above the 50 level.

Happy Trading!

Chart Source – TradingView.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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