Bitcoin Price Analysis: BTC/CNY Remains Buy Dips
Bitcoin price remained supported against the Chinese Yuan and the US Dollar, and it looks like the BTC/CNY pair is a good buy on dips near 6770.
There is a new connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with support at 6770 on the downside.
Bitcoin Price Support
Yesterday, we saw how Bitcoin price started an uptrend against the Chinese Yuan, and traded above 6500. It looks like BTC to CNY is a good buy at the moment with a couple of supports at 6770 and 6700 on the downside.
Yesterday, we highlighted a trend line support at 6700, which worked well, as it was also coinciding the 38.2% Fib retracement level of the last wave from the 6350 low to 6895 high.
When the price moved down and corrected lower, the support area held the downside and pushed the price higher. The price traded back towards the last swing high of 6895, which acted as a resistance once again and pushed the price down.
Currently, there is a connecting bullish trend line formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with support at 6770. The same support also coincides with the 23.6% Fib retracement level of the last wave from the 6350 low to 6895 high.
So, we can say that 6770 is a nice support where one may consider buying in the short term. As long as the price is above 6770, there is a chance of a move towards 6890.
A break above the 6895 is needed for the price to extend the upside move may be towards 7000.
The hourly RSI for BTC/CNY is still above the 50 level, and suggesting good signs for buyers.
Chart Source – TradingView.com and data feed by BTCCHINA