Bitcoin Price Analysis: BTC/CNY May Correct Lower
Bitcoin price moved higher a few points against the Chinese Yuan, and yesterday’s idea of buying dips if the pair BTC/CNY pair corrects worked well.
There is a new bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which is currently acting as a support area.
Bitcoin Price to Break Down?
The BTC to CNY made a nice move yesterday. There was a minor dip in Bitcoin price, which later found support. I mentioned yesterday that the BTC/CNY pair remains buy on dips in the short term.
The price did move higher after a mild correction. It traded lower towards the 23.6% Fib retracement level of the last wave from the 4680 low to 4938 high, and gained buyers. The price moved higher once again and broke the last swing high of 4938.
The price even broke the 4950 resistance for a move towards the 4973 level. The price is once again correcting lower and finding bids near a bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA).
It is acting as a support area along with the 23.6% Fib retracement level of the last wave from the 4680 low to 4738 high. The trend line support and the fib level may play a major role in the short term, and it won’t be easy for the BTC sellers to break it.
However, it looks like the price may correct lower further in the short term, and break the trend line support. The next stop on the downside could be around the 38.2% Fib retracement level of the last wave from the 4680 low to 4738 high.
The hourly RSI of BTC/CNY has also moved below the 50 level, which is a short-term bearish sign.
Chart Source – TradingView.com and data feed by BTCCHINA