Bitcoin Price Analysis: BTC/CNY Posting Downside Break?
Bitcoin price failed to hold the bullish trend against the Chinese Yuan and the US Dollar. The BTC/CNY pair broke a short term support at 5440 and moved down.
Yesterday’s bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) was broken to open the doors for a downside move and reaction.
Bitcoin Price Short-term trend change
The BTC to CNY was seen trading with a positive tone yesterday until it found sellers near 5510. The stated level acted as a strong resistance, and ignited a downside move.
The most important point was the failure to settle above the 61.8% Fib retracement level of the last decline from the 5520 high to 5349 low. So, the trend change was ignited, which also resulted in a break below the 5440 support.
During the downside move, there was also a break below yesterday’s bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA). This was not all, as there was a close below the 100 hourly simple moving average, taking the pair towards 5375.
However the pair later recovered and moved back above the 100 hourly simple moving average. Moreover, the pair also cleared the 50% Fib retracement level of the last decline from the 5465 high to 5376 low.
However, the upside move faced sellers near 5450, which was a support earlier and now acted as a resistance. Moreover, the 76.4% Fib retracement level of the last decline from the 5465 high to 5376 low also acted as a resistance.
Overall, it looks like the broken support and trend line is now acting as a resistance where one may consider selling with a tight stop.
The hourly RSI is currently below the 50 level, which is a bearish sign for BTC to CNY in the short term.
Chart Source – TradingView.com and data feed by BTCCHINA