Bitcoin Price Analysis: BTC/CNY May Gain Traction
Bitcoin price after trading as low as 4523 against the Chinese Yuan started trading higher, and it looks like the BTC/CNY pair may trade higher in the short term.
There is a contracting triangle pattern formed on the hourly chart of the BTC/CNY pair (data feed via BTCCHINA) of BTC/CNY, which can be considered as a support area.
Bitcoin Price Support
The BTC to CNY after trading as high as 5120 started a declining phase, and moved towards the 4500 support area. The BTC buyers appeared around 4520, and started pushing the price back higher.
The BTC/CNY pair is currently trading with a positive tone, and moved above the 23.6% Fib retracement level of the last wave from the 5125 high to 4523 low. However, it looks like the 100 hourly simple moving average is currently acting as a resistance and preventing an upside move.
The price may trade further higher, as there is contracting triangle pattern formed on the hourly chart of the BTC/CNY pair (data feed via BTCCHINA) of BTC/CNY. It may act as a catalyst for an upside move, and push the price higher.
On the upside, if there is a break above the triangle resistance and the 100 hourly SMA, then it would clear the way for more upsides going forward. The BTC buyers also need to clear the 50% Fib retracement level of the last wave from the 5125 high to 4523 low.
On the downside, the triangle support area holds the key and may provide bids. As long as the price is above the support area, there is a chance of BTC/CNY trading higher back towards the 5000 mark. The hourly RSI is just above the 50 level, which is a positive sign for the BTC bulls.
Chart Source – TradingView.com and data feed by BTCCHINA