Bitcoin Price Analysis: BTC/CNY Higher as Per Forecast

Bitcoin Price Analysis

Bitcoin price continued to move higher against the Chinese Yuan, and it looks like the BTC/CNY pair may gain traction moving head for a test of 5000.

Yesterday’s highlighted ascending channel on the hourly chart of BTC/CNY (data feed via BTCCHINA) acted as a perfect support and pushed the price higher.

Bitcoin Price Bounce

The BTC to CNY dipped a few points yesterday, but later found support and started moving higher. There was a nice upside move, taking the price above the 4800. I stated in yesterday’s post that the price may easily test the stated level, and it did.

It looks like the price is in an uptrend, and it may continue to gain traction in the short term. The most important point is the fact that yesterday’s highlighted ascending channel on the hourly chart of BTC/CNY (data feed via BTCCHINA) acted as a perfect support area.

The price reached the channel support trend line, which provided bids and price bounced. The price is currently trading near the channel resistance area, and attempting to break it. The price has also moved above the 50% Fib retracement level of the last decline from the 5125 high to 4523 low.

So, it means there is a chance of buyers gaining traction and taking the price further higher. Currently, the buyers are attempting to break the 61.8% Fib retracement level of the last decline from the 5125 high to 4523 low.

A clear break may signal further gains and take the price towards the 5000 mark. There was also a comfortable close above the 100 hourly simple moving average, which is a positive sign. The hourly RSI is currently around the overbought levels. So, there can be a minor dip, but the price remains supported.

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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