Bitcoin Price Analysis: BTC/CNY Facing Resistance Trend Line
Bitcoin price started a correction yesterday against the Chinese Yuan and the US Dollar. The BTC/CNY pair is currently moving higher, but facing resistance near 6400.
There is a new connecting bearish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA), which is acting as a resistance near 6350-6400.
Bitcoin Price Resistance
We saw how Bitcoin price started a downside move yesterday against the Chinese Yuan, and moved towards the 6200 level. The BTC to CNY extended the downside move and traded close to the 6100 level.
During the downside move it already broke the 38.2% Fib retracement level of the last wave from the 5720 low to 6519 high yesterday. However, there was a spike below the 100 hourly simple moving average later, but the pair later found support.
There was a complete test of the 50% Fib retracement level of the last wave from the 5720 low to 6519 high, where the pair found support and started moving higher.
Later, the price managed to move back above the 100 hourly simple moving average to trade above 6300. However, there is a resistance near a new connecting bearish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) at 6350-6400.
The resistance trend line near 6350-6400 is acting as a resistance at the moment, and stopping the upside move. A break above it needed for a test of 6500 once again.
If the price continues to fail near the trend line, there is a chance of downside move back towards the 6200 level. A close below the 100 hourly SMA or 6200 may call for a test of 6000.
The hourly RSI for BTC/CNY is moving higher from the 30 level and signaling gains.
Chart Source – TradingView.com and data feed by BTCCHINA