Bitcoin Price Analysis: BTC/CNY Looks Under Pressure
Bitcoin price was under pressure against the Chinese Yuan and the US Dollar. The BTC/CNY pair faced sellers and moved below 7800 support area.
There is a major bearish trend line formed with resistance at 7800 formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which can be seen as a sell zone in the short term.
Bitcoin Price Resistance
Due to some concerns and selling pressure, Bitcoin price fell against the Chinese Yuan, and broke the 7950 and 7800 support levels. A solid downside move was initiated, putting the price at a risk of more losses towards 0.7500.
Recently, the price fell and traded as low as 0.7612 where it found support. The price is currently recovering, but likely to face sellers on the way up. First, the 38.2% Fib retracement level of the last drop from the 8000 high to 7612 low is at 7757.
However, the most important resistance is near 7800, as a major bearish trend line is positioned on the hourly chart of BTC/CNY (data feed via BTCCHINA). It also coincides with the 50% Fib retracement level of the last drop from the 8000 high to 7612 low.
So, there is a clear resistance formed at 0.7800. It was a support earlier, and now might prevent gains above 0.7850. Only a clear break above the trend line resistance could push the price towards 8000.
However, the 100 hourly simple moving average is at 8080, waiting to act as a resistance in that case. On the downside, the recent low of 7612 is a support. A break below it could push the price towards the 0.7500 handle in the short term.
The hourly RSI for BTC/CNY is well below the 50 level, signaling a downside move.
Chart Source – TradingView.com and data feed by BTCCHINA