Bitcoin Price Analysis: BTC/CNY Consolidating Above Support
Bitcoin price after a decline against the Chinese Yuan and the US Dollar started consolidating. It looks like the BTC/CNY pair may move a few points higher in the short term.
This past week’s highlighted bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) is still active on the upside to act as a hurdle for the pair.
Bitcoin Price Resistance
The BTC to CNY traded towards the 5100 level this past week and started finding bids. The BTC/CNY pair is trading in a range above the stated level and looks like consolidating losses.
It has already moved above a couple of short-term resistances, suggesting that there is a chance of more gains in the short term. The pair is above the 100 hourly simple moving average, which is a positive sign.
Second, the price is also above the 23.6% Fib retracement level of the last decline from the 5325 high to 5087 low. At this moment, the price is attempting to break the 38.2% Fib level of the same wave.
If it breaks, it will take the pair towards this past week’s highlighted bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA). It is an important resistance area on the upside, and may act as a barrier for the BTC buyers.
The same trend line is also just above the Fib retracement level of the last decline from the 5325 high to 5087 low. So, if the pair continues to move higher, it may face sellers near the 5250 level. One may consider buying in the short term, and then selling near the trend line resistance.
The hourly RSI is now well above the 50 level, which is a positive sign for the BTC/CNY pair.
Chart Source – TradingView.com and data feed by BTCCHINA