Bitcoin Price Analysis: BTC/CNY Correction Extended
Bitcoin price started a correction against the Chinese Yuan and the US Dollar yesterday. Later, the BTC/CNY pair extended the correction wave and moved down further.
Yesterday’s highlighted bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) was broken to initiate a downside move.
Bitcoin Price Decline
The BTC to CNY started correcting lower yesterday, and it looks like the correction wave extended more than expected. There was a change in the MACD slope from the bullish to the bearish zone, as mentioned in yesterday’s post which ignited a downside move.
During the downside move, the price broke a couple of important support areas. First, the 50% Fib retracement level of the last wave from the 5140 low to 5479 high was cleared.
Second, yesterday’s highlighted bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) was also cleared, opening the doors for more losses.
The price traded as low as 5258 where the BTC buyers are attempting to push the price back higher. However, the short-term trend looks like changed, so it won’t be easy for buyers to take the price higher.
On the upside, an initial resistance can be around the 23.6% Fib retracement level of the last decline from the 5440 high to 5258 low. However, the most important resistance is near the broken trend line, which is also coinciding with the 100 hourly simple moving average at 5380.
So, if you are looking to sell, then consider it on rallies with a stop above the 100 hourly simple moving average. It looks like the price may easily test the 5200 level or could even break it for more losses.
The hourly RSI is also below the 50 level, which is a bearish sign for BTC to CNY.
Chart Source – TradingView.com and data feed by BTCCHINA