Bitcoin Price Analysis: BTC/CNY Upside Intact
Bitcoin price climbed further higher against the Chinese Yuan and the US Dollar, and it looks like the BTC/CNY pair attempt to settle above 7000 succeeded
There is a contracting triangle pattern formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with resistance near 7300 for the next move.
Bitcoin Price Consolidation
Recently, there was a good upside move Bitcoin price against the Chinese Yuan, as the price traded with a positive tone and broke the 7000 resistance.
The move was such that the price is now well positioned above 7000, and looks set for more gains. The recent high was 7279 before the price started consolidating gains. Earlier, there was a dip towards the 50% Fib retracement level of the last wave from the 6350 low to 6895 high before the price started trading higher.
The price is also well above the 100 hourly simple moving average with support at 7150. It looks like the price is currently consolidating gains and formed a contracting triangle pattern formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with resistance near 7300.
The pair may dip once towards the triangle trend line support at 7150. It is also above the 23.6% Fib retracement level of the last wave from the 6650 low to 7279 high.
So, if the price dips lower, there are chances of it gaining support near the triangle trend line at 7150. One may even consider buying as long as the price is above 7000. Only a break below it, could ignite an extended correction towards 6500.
On the upside, the next resistance is at 7300, which is also a pivot level. The hourly RSI for BTC/CNY is well above the 50 level, and suggesting positive signs.
Chart Source – TradingView.com and data feed by BTCCHINA