Bitcoin Price Analysis: BTC/CNY Range Trade
Bitcoin price stayed in a range against the Chinese Yuan and the US Dollar. The BTC/CNY pair is currently struggling a lot around the 6400 resistance area.
There is a bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which is acting as a support on the downside at 6200.
Bitcoin Price Resistance
The BTC to CNY continued to stay in a range, as a crucial resistance at 6400 continued to act as a hurdle for the buyers. The price is struggling a lot to clear the stated level, and failed to settle above it on many occasions.
As we know, there was a recovery initiated from the 5622 low in BTC/CNY, and the price closed above 6000. However, since then there has been a continuous struggle to clear the 6400 level.
The stated level also represents the 23.6% Fib retracement level of the last drop from the 8885 high to 5622 low. However, the best part is the fact that the price is now back above the 100 hourly simple moving average.
The stated SMA also coincides with a bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) 6200. The trend line support and the 100 hourly SMA are acting as a barrier for downsides near 6200.
We can say that the price is stuck in a range with support near 6200 and 6000, and a resistance on the upside near 6400. If there is a break above the 6400 resistance, there is a chance of a move towards the 50% Fib retracement level of the last drop from the 8885 high to 5622 low.
The hourly RSI for BTC/CNY is currently above the 50 level, and moving upside towards 60.
Chart Source – TradingView.com and data feed by BTCCHINA