Bitcoin Price Analysis: BTC/CNY Started Correction?
Bitcoin price after trading higher against the Chinese Yuan and the US Dollar traded lower. Let’s see how far the current correction can go in the BTC/CNY pair.
There was a bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which as broken during the downside move at 6330.
Bitcoin Price Downside Break
There was a nice upside move in Bitcoin price versus the Chinese Yuan, as there was a move above 6500. The BTC to CNY traded as high as 6519 where it found offers, and started trading lower in the form of a correction.
The price moved down, and broke the 23.6% Fib retracement level of the last wave from the 5720 low to 6519 high. It ignited a downside move, and there was also a break below a bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA).
The pair moved down sharply and traded close to the 100 hourly simple moving average at 6100 where it found support. Moreover, the same level also represented the 50% Fib retracement level of the last wave from the 5720 low to 6519 high.
So, it was a perfect support area at 6100, as the price started trading higher once again. It now back above 6200, but it looks like the correction phase is not over yet. The price may once again move down, and trade towards 6000.
There is a short-term change in the trend, which means the price may correct more before resuming higher. If you are looking to enter a buy trade, then consider it on dips near the 6000 level.
The hourly RSI for BTC/CNY is around the 50 level with no major signs of a bullish wave in the near term.
Chart Source – TradingView.com and data feed by BTCCHINA