Bitcoin Price Analysis: BTC/CNY Breaks Past 7000
Bitcoin price moved higher against the Chinese Yuan and the US Dollar. The BTC/CNY pair is now above 7000 and looks to extend gains.
There is a crucial bullish trend line formed with support at 7010 formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which might act as a support if the pair moves down.
Bitcoin Price Support
There was an uptrend initiated in Bitcoin price, as it moved above the 6700 and 6800 resistance levels against the Japanese Yuan. The most important break was above the 7000 mark.
The price was also able to break the 61.8% Fib retracement level of the last drop from the 7400 high to 6114 low.
It looks like the price is now back in the bullish zone, and may extend gains above 7100. On the downside, there is a major support formed at 7000. The same level was a resistance earlier, and may act as a support now.
The 100 hourly simple moving average is also at 7010. Moreover, there is a crucial bullish trend line formed with support at 7010 formed on the hourly chart of BTC/CNY (data feed via BTCCHINA). Furthermore, the 23.6% Fib retracement level of the last wave from the 6120 low to 7085 high is also just below the trend line.
So, we can say there is a nice support formed above 7000. As long as the price is above it, there can be more gains. On the upside, an initial resistance is near 7085, which is the recent high.
A break above it could call for a move above the 7100 level. Overall, the trend is positive with support above 7000.
The hourly RSI for BTC/CNY is currently well above the 50 level, and pointing good signs.
Chart Source – TradingView.com and data feed by BTCCHINA