Bitcoin Price Analysis: BTC/CNY Rockets Higher Towards 5400
Bitcoin price continued to gain traction against the Chinese Yuan and the US Dollar. The BTC/CNY pair surged higher and even tested the 5400 level.
Yesterday’s highlighted bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) was broken to ignite further gains in the short term.
Bitcoin Price Bullish
The BTC to CNY gained further momentum during the past few hours and broke a couple of important resistance levels. The most important one was a break above the 5250 level.
Second, the price also moved above this week’s highlighted bearish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA). Once there was a break above the trend line resistance, the BTC bulls stepped up the momentum, and pushed the price further higher.
There was a move towards 5400, and a new weekly high of 5418 was formed. Before the break, the price tested the 23.6% Fib retracement level of the last wave from the 8090 low to 5252 high and gained buyers for an upside move.
Currently, the price is gaining momentum, and there is hardly any chance of a correction in the short term. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the 5140 low to 5418 high.
The chances of the pair breaking the recent high of 5418 are very high. A break above it may call for a move towards the all-important 5500 level. You can once again consider buying dips in the short term as long as the price is above the 5300 support area.
The hourly RSI is currently around the overbought levels, but there are no signs of a major correction in the short term in the BTC/CNY pair.
Chart Source – TradingView.com and data feed by BTCCHINA