Bitcoin Price Analysis: BTC/CNY Nosedives Below 7000

Bitcoin Price Analysis

Bitcoin price after a surge higher against the Chinese Yuan and the US Dollar found offers. The BTC/CNY pair traded sharply lower, and settled below the 7000 support.

Yesterday’s highlighted rising bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA) was broken to clear the way for downsides in the near term towards 6200.

Bitcoin Price Bearish?

The BTC to CNY surged past the 8800 level recently where it found sellers and started a downside move. Initially, it broke the 23.6% Fib retracement level of the last wave from the 7300 low to 8885 high. It ignited a downside move and pushed the price further lower.

The most important break was below yesterday’s highlighted rising bullish trend line on the hourly chart of BTC/CNY (data feed via BTCCHINA). Later, the price also broke the 50% Fib retracement level of the last wave from the 7300 low to 8885 high.

The next important break was the 7500 support. It was a major support, and a break below it called a move below the 7000 level. The pair traded sharply lower and moved towards the 6000 handle.

Later, the price started correcting higher, and moved towards the same broken support at 7500 where it found resistance. It acted as a resistance along with the 50% Fib retracement level of the last drop from the 8885 high to 6098 low.

The price once again started moving down, and broke a recently formed bullish trend line on the hourly chart of BTC/CNY at 6800. It looks like the price may struggle to retain the bullish bias in the short term, and could trade lower.

The hourly RSI for BTC/CNY is now below the 50 level, calling for a downside move.

Happy Trading!

Chart Source – TradingView.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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