Bitcoin Price Analysis: BTC/CNY To Move Down
Bitcoin price after an upside move against the Chinese Yuan and the US Dollar found resistance. The BTC/CNY pair is now moving down and trading below 7100.
There was a bullish trend line formed with support at 7065 on the hourly chart of BTC/CNY (data feed via BTCCHINA), which was broken recently for a downside move.
Bitcoin Price Trend
There was an upside move in Bitcoin price against the Chinese Yuan recently, as the price managed to move above the 7000 handle.
However, the upside was limited, as the price faced resistance near 7200. The price started moving down and broke the 7100 support. Also, during the downside, the price broke a bullish trend line formed with support at 7065 on the hourly chart of BTC/CNY (data feed via BTCCHINA).
Recently, there was a close below the 23.6% Fib retracement level of the last wave from the 6600 low to 7200 high. So, it is can be seen as another sign that the price may move down further.
On the downside, the most important support is near 7000. It might play an important support. Below it, there lies the 38.2% Fib retracement level of the last wave from the 6600 low to 7200 high. The 6975 support is also important since the 100 hourly simple moving average is positioned near it.
So, if the pair continues to move down, the 100 hourly SMA at 6975 might play a major role. If you are a buyer, I would suggest to wait for some time. Let the price complete a correction near 6975, and then it stable before getting into a trade.
The hourly RSI for BTC/CNY is heading lower and well below 50 level, which is not a good sign for the bulls.
Chart Source – TradingView.com and data feed by BTCCHINA