Bitcoin Price Analysis: BTC/CNY Forming Breakout Pattern
Bitcoin price started a tiny correction against the Chinese Yuan and the US Dollar, and it looks like the BTC/CNY pair is currently forming a breakout pattern.
There is a contracting triangle pattern formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which may act as a catalyst for the next break in the short term.
Bitcoin Price Support
The BTC to CNY after a solid surge yesterday found sellers near 5400 and started consolidating gains. There was a nice ranging pattern formed. However, it looks the price may correct a few points before the buyers can take control once more time.
The price already moved lower, and tested the 23.6% Fib retracement level of the last wave from the 4680 low to 5395 high. However, there was no break below it.
The price at the moment is ranging, and attempting a recovery. It looks like there is a breakout pattern forming for BTC to CNY. Looking at the hourly chart of BTC/CNY (data feed via BTCCHINA), there is a contracting triangle pattern formed.
It may play a major role, as on the downside its support is coinciding with the mentioned 23.6% Fib level. A break below it could initiate a downside move towards the 38.2% Fib retracement level of the last wave from the 4680 low to 5395 high.
However, the most important support on the downside is around the 100 hourly simple moving average. On the upside, the recent high of 5395 must be broken for further gains in the short term. In short, if you are looking to enter a buy trade, then wait for a close above 5400.
The hourly RSI of BTC/CNY is currently below the 50 level, which means there is a chance of a correction.
Chart Source – TradingView.com and data feed by BTCCHINA