Bitcoin Price Analysis: BTC/CNY Under Bearish Pressure
Bitcoin price started a downside move against the Chinese Yuan and the US Dollar. The BTC/CNY pair is currently under a bearish pressure, and may decline further.
There is a bearish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which is acting as a resistance near 6400 and protecting an upside move.
Bitcoin Price Decline
The BTC to CNY looks like made a top above the 8800 level, and may continue to trade lower. The worst part is the fact that the price settled below a couple of important support levels like 7000 and 6500, which could ignite more declines in the near term.
Recently, the price traded higher, and attempted to settle above the 6500 level, but failed. It found a bearish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which acted as a resistance near 6400.
The price also failed to settle above the 23.6% Fib retracement level of the last drop from the 8885 high to 5622 low. The price stated moving lower once again, and during the downside broke a bullish trend line on the same chart at 6400.
This meant that the price may have completed a short-term correction, and resumed its downtrend. The price looks like heading back towards the 6000 level. A break below it could ignite a wave towards the last swing low of 5622.
On the upside, the highlighted bearish trend line on the hourly chart may continue to act as a hurdle at 6400. Only a break above it could take the price towards the next resistance around the 100 hourly simple moving average near 6600.
The hourly RSI for BTC/CNY is now below the 50 level, and suggesting more declines.
Chart Source – TradingView.com and data feed by BTCCHINA