Bitcoin Price Analysis: BTC/CNY Support Turned Resistance
Bitcoin price started a correction against the Chinese Yuan and the US Dollar. The BTC/CNY pair later found resistance near 5200 and moved down.
Yesterday, I highlighted a major resistance area near 5200 on the hourly chart of BTC/CNY (data feed via BTCCHINA), which played well in acting as a hurdle for an upside move.
Bitcoin Price Resistance
The BTC to CNY after trading as low as 5005 started correcting higher, and we also saw a move above the 23.6% Fib retracement level of the last decline from the 5400 high to 5005 low yesterday.
The correction pattern extended, but found sellers near a major hurdle. Yesterday, I highlighted how an important support at 5200 was broken, and could act as a resistance. The price around the same area, and started to face offers.
The 5200 resistance was also near the 50% Fib retracement level of the last decline from the 5400 high to 5005 low. So, it represents a crucial technical level, and a failure near it means the price may move down once again.
It looks like the BTC/CNY pair may test the 5100 handle once again, and if sellers remain in action, there can be more declines towards the last swing low of 5005.
On the upside, the 5200 level may continue to act as a resistance, and one might even consider selling near it.
A break above it could take the pair towards the 100 hourly simple moving average, which is the next barrier for BTC. As long as the price is below it, it may continue to face sellers.
The hourly RSI has also moved below the 50 level, which is a bearish sign and may lift the market sentiment in favor of the BTC bears.
Chart Source – TradingView.com and data feed by BTCCHINA