Bitcoin Price Analysis: BTC/CNY Struggling to Hold 5200

Bitcoin Price Analysis

Bitcoin price remained under a bearish pressure against the Chinese Yuan and the US Dollar. More declines are possible in the BTC/CNY pair in the short term.

Yesterday’s highlighted important bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) is still intact and acting as a barrier for an upside move.

Bitcoin Price Decline

The BTC to CNY continue to trade lower, as there was an increase in the bearish pressure. There was even a close below the 100 hourly simple moving average, which may now act as a resistance.

We saw how the price broke the 50% Fib retracement level of the last wave from the 5005 low to 5342 high, and tested the 61.8% fib level of the same wave. The price is now below the 5200 support area, which means there is a chance of further losses in the short term.

The price traded as low as 5109, and then started correcting higher. However, the 100 hourly simple moving average acted as a resistance along with the 38.2% Fib retracement level of the last decline from the 5325 high to 5109.

The most important point is that yesterday’s highlighted important bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) was a perfect catalyst for a downside move, and it may continue to act as a barrier.

On the downside, the recent low of 5109 low may act as a support in the short term. A break below it could take the pair towards the next support area of 5000. It holds a lot of importance and must protect the downside move.

The hourly RSI is now well below the 50 level, and calling for further declines in the BTC/CNY pair.

Happy Trading!

Chart Source – TradingView.com and data feed by BTCCHINA

Bitcoin Advice

All posts published by the Bitcoin Advice Editorial Team combined. Primary objective is to provide quality content to our readers.

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