Bitcoin Price Analysis: BTC/CNY Approaching Support
Bitcoin price remained in the bullish zone against the Chinese Yuan and the US Dollar. The BTC/CNY pair is currently correcting and about to reach a support area.
There is a connecting bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA), which may act as a support near 6440.
Bitcoin Price Buy Area
The BTC to CNY was seen trading with a positive tone, and remained above a major support area of 6400. The stated level represents a crucial support area for the BTC/CNY pair, and it may continue to act as a buy zone in the short term.
The price recently traded as high as 6527 from there a correction move was initiated. There was a dip below the 23.6% Fib retracement level of the last wave from the 6150 low to 6527 high. So, there is a chance of more corrections in the near term.
However, as mentioned, there is a crucial support waiting on the downside at 6400. The same level is positioned with a connecting bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA). Moreover, the 100 hourly simple moving average is also around the same level.
Lastly, the 38.2% Fib retracement level of the last wave from the 6150 low to 6527 high is also positioned near 6400. Overall, the stated level is a major support and a buy area in the short term.
So, if you are looking to enter a buy trade, then consider it near the trend line support at 6400. A break below it could ignite more losses may be towards the 6200 level.
The hourly RSI for BTC/CNY is about to reach the 50 level, suggesting the price is reaching a support zone.
Chart Source – TradingView.com and data feed by BTCCHINA