Bitcoin Price Analysis: BTC/CNY Heading Towards Break
Bitcoin price started a consolidation pattern against the Chinese Yuan and the US Dollar yesterday. It looks like the BTC/CNY pair is forming a breakout pattern for the next move.
There is a contracting triangle pattern formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which may provide us the next move in the short term.
Bitcoin Price Next Move
The BTC to CNY after a correction wave started a consolidation pattern with support at 5227. There was a rise and dip with resistance near the 5350 level. The price after trading as low as 5227 traded higher and attempted a bounce with a break above the 38.2% Fib retracement level of the last decline from the 5440 high to 5227 low.
However, the upside was limited, as the price was rejected at 5350. The stated level also coincided with the 50% Fib retracement level of the last decline from the 5440 high to 5227 low. The price started trading lower once again.
Now, it looks like there is a contracting triangle pattern formed on the hourly chart of BTC/CNY (data feed via BTCCHINA). It is about to break and provide us the next move.
An upside break could easily take the price towards the 61.8% Fib retracement level of the last decline from the 5440 high to 5227 low at 5360. The stated level is also positioned with the 100 hourly simple moving average.
On the downside, a break may take the pair below the last low 5227. There can be a test of the 5200 level in that case if sellers gain control.
The hourly RSI is just around the 50 level, and waiting for the next move in BTC to CNY in the near term.
Chart Source – TradingView.com and data feed by BTCCHINA