Bitcoin Price Analysis: BTC/CNY Broke 7000
Bitcoin price surged higher once again versus the Chinese Yuan and the US Dollar. The BTC/CNY pair also broke a major resistance area at 7000 for further gains.
There is a new connecting bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA), which is acting as a support area on the downside.
Bitcoin Price Support
The BTC to CNY this past week was seen struggling to break a major resistance area near 7000. Recently, there was an increase an in the bullish sentiment for the BTC vs CNY, which resulted in an upside surge above a couple of important resistance levels.
The most important move was above the 7000 level. The price made a nice break and moved higher by more than 200 points. A new year high was set at 7291, and currently there are no signs of a correction.
So, there is a chance of a move above the 7300 level. If at all, there is a correction, then an initial support is around the 23.6% Fib retracement level of the last wave from the 6600 low to 7291 high.
However, the most important support is around a new connecting bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA). The same trend also coincides with the 38.2% Fib retracement level of the last wave from the 6600 low to 7291 high.
Moreover, the 7000 level may now act as a major support area. It was a resistance earlier, and now might provide support in the short term at 7000. The BTC/CNY pair is also above the 100 hourly simple moving average, which is a bullish sign.
The hourly RSI for BTC/CNY is well into the overbought levels, but with no sign of a correction.
Chart Source – TradingView.com and data feed by BTCCHINA