Bitcoin Price Analysis: BTC/CNY Struggling to Hold 5200
Bitcoin price corrected lower against the Chinese Yuan and the US Dollar. It looks like the trend line resistance is acting as a major hurdle for the BTC/CNY pair.
Yesterday’s highlighted important bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) acted as a resistance and prevented an upside move.
Bitcoin Price Resistance
The BTC to CNY managed to traded higher yesterday towards the 5350 level. However, the upside move could not last long, as the sellers prevented a break.
There was an important bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) as highlighted in yesterday’s post. It acted as a major barrier for further gains and prevented a break above the 5350 level.
The price moved down, and traded below the 38.2% Fib retracement level of the last wave from the 5005 low to 5342 high. The price even closed below the 100 hourly simple moving average.
However, the 5200-5160 support area acted as a hurdle for the sellers and pushed the price back higher. Moreover, the 50% Fib retracement level of the last wave from the 5005 low to 5342 high also acted as a support area.
The price is now back above the 100 hourly simple moving average, but struggling to hold the gains. It may move down once again, and if there is an increase in selling pressure, the price could head towards the 5100 level.
One may even consider selling in the short term, but a tight stop may be above the trend line resistance. Buying should be avoided in the short term.
The hourly RSI is now below the 50 level, and suggesting that the BTC sellers are in action at the moment.
Chart Source – TradingView.com and data feed by BTCCHINA