Bitcoin Price Analysis: BTC/CNY Remains Range Bound
Bitcoin price continued its consolidation phase against the Chinese Yuan and the US Dollar, and it looks like the BTC/CNY pair is preparing for the next move.
This past week’s highlighted bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) is still placed on the upside to stop the upside move in the pair.
Bitcoin Price Range
The BTC to CNY remained below the 5200 resistance and continued its consolidation phase during the past 24 hours. There was no major break in BTC/CNY and the pair continued to trade in a range in the short term.
The pair recently traded as low as 5087, and started correcting higher. However, it faced sellers near the 38.2% Fib retracement level of the last decline from the 5325 high to 5087 low, and started trading in a range.
The range resistance is at 5200 and the support lies at 5125, followed by the last swing low of 5087. On the upside, the most important resistance is near this week’s highlighted bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA).
The same trend line resistance is also positioned with the 61.8% Fib retracement level of the last decline from the 5325 high to 5087 low. So, if there is a break above the range resistance, then the trend line may act as a barrier for more gains.
It looks like one may consider selling rallies in the short term as long as the pair is below the trend line resistance. Buying should be avoided as of now, as the trend is not clear, and the price may move down in the short term.
The hourly RSI is currently just below the 50 level, and shows that the BTC/CNY pair is struggling to gain pace.
Chart Source – TradingView.com and data feed by BTCCHINA