Bitcoin Price Analysis: BTC/CNY Approaching Support

Bitcoin Price Analysis

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.

Happy Trading!

Chart Source РTradingView.com and data feed by BTCCHINA

Aayush Jindal

Aayush has spent over EIGHT years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets.

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