Bitcoin Price Analysis: BTC/CNY Just Turned Bullish
Bitcoin price moved higher against the Chinese Yuan and the US Dollar. It looks like the trend has just changed for the BTC/CNY pair from bearish to bullish.
Yesterday’s highlighted major resistance area near 5200 on the hourly chart of BTC/CNY (data feed via BTCCHINA) was broken to clear the way for more gains in the short term.
Bitcoin Price Upside Move
The BTC to CNY after trading in a range for some time managed to move higher. There was a nice upside move, as the price was able to clear a couple of important resistance levels.
First, the 50% Fib retracement level of the last decline from the 5400 high to 5005 low was broken. Second, yesterday’s highlighted major resistance area near 5200 on the hourly chart of BTC/CNY (data feed via BTCCHINA) was cleared.
Third, the price was also able to close above the 100 hourly simple moving average. All these important breaks cleared the way for more gains in BTC.
The price traded as high as 5342 where it found a bearish trend line on the hourly chart. The price is currently correcting lower, and may test the 23.6% Fib retracement level of the last wave from the 5005 low to 5342 high.
However, the BTC/CNY pair remains supported on the downside. The most important support is near the 100 hourly simple moving average. The stated MA is also positioned with the 100 hourly simple moving average.
So, if the price dips from the current levels, one may consider buying as long as the 5200 support is intact. It was a resistance earlier and may now act as a buy area.
The hourly RSI is also well above the 50 level, which is a positive sign in the short term.
Chart Source – TradingView.com and data feed by BTCCHINA