Bitcoin Price Analysis: BTC/CNY Upsides To Continue
Bitcoin price surged higher against the Chinese Yuan and the US Dollar, and it looks like the BTC/CNY pair is poised for more gains with support at 6700.
There is a connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with support at 6700 on the downside.
Bitcoin Price Trend
There was a lot of strength noted in Bitcoin price against the Chinese Yuan as it moved past the 6400 resistance. Once the price succeeded in trading above the stated level, there was a nice upside ride, taking the price above the 6500.
There was a new intraday high was formed at 6895, and it looks like the price may continue to trade higher. The price is currently correcting lower, and already moved below the 23.6% Fib retracement level of the last wave from the 6350 low to 6895 high.
However, there is a connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with support at 6700. Moreover, the 38.2% Fib retracement level of the last wave from the 6350 low to 6895 high is also aligned with the trend line.
So, we can say that there is a major support at 6700, which can be seen as a buy zone. Below it, the most important support can be 6400. It was a resistance earlier, and now it could act as a support at 6400-6450.
So, if the price corrects lower, there is a chance of buyers appearing and preventing downsides near 6700 and 6600. On the upside, a push above 6800 might take the price towards 7000.
The hourly RSI for BTC/CNY is correcting from the overbought levels, and signaling a bullish bias in the short term.
Chart Source – TradingView.com and data feed by BTCCHINA