Bitcoin Price Analysis: BTC/CNY Under Pressure Below 6800
Bitcoin price moved down against the Chinese Yuan and the US Dollar. The BTC/CNY pair is facing resistance around 6800, and might decline further.
There is a major bearish trend line formed with resistance at 6720 formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which might continue to push the price down.
Bitcoin Price Resistance
After trading as high as 7400, Bitcoin price started a downside move against the Japanese Yuan. The price traded below the 7000 handle for a move towards the 6100 level.
A new low was formed near 6114 for the week from where the price started a recovery. It moved above the 23.6% Fib retracement level of the last drop from the 7400 high to 6114 low. It prompted further upsides in BTC to CNY towards the 6800 level.
However, the price found strong resistance near 6800. The 50% Fib retracement level of the last drop from the 7400 high to 6114 low acted as a resistance and paused the upside. Moreover, the 100 hourly simple moving average was also around 7810 to act as a barrier.
Now, the pair is following a major bearish trend line formed with resistance at 6720 formed on the hourly chart of BTC/CNY (data feed via BTCCHINA). The same trend line is aligned with the 100 hourly simple moving average at 6710.
So, we can say that the price is facing a major resistance between 6700 and 6800. As long as the price is below the 100 hourly simple moving average and the 6800, it might decline further. There could be even a retest of the 6200 level in the near term.
The hourly RSI for BTC/CNY is currently well below the 50 level, and suggesting more losses.
Chart Source – TradingView.com and data feed by BTCCHINA