Bitcoin Price Analysis: BTC/CNY Surges Past 7700
Bitcoin price continued to gain momentum against the Chinese Yuan and the US Dollar. The BTC/CNY pair is positioned well above 7700, and looking for more gains.
There is a crucial bullish trend line formed with support at 7720 on the hourly chart of BTC/CNY (data feed via BTCCHINA), which can be seen as a pivot zone in the short term.
Bitcoin Price Bounce
There was an increase in the bullish pressure on Bitcoin price against the Chinese Yuan, as it climbed further higher, and moved above a couple of important resistance levels like 7500 and 7700.
The most important move was above 7700, as the price traded as high as 7900 before correcting lower. During the correction wave, the price moved back below 7700 and traded as low as 7294 where it found support.
The price bounced back, and moved above the 50% Fib retracement level of the last drop from the 7900 high to 7294 low. During the upside, the price was able to settle once again above 7700.
Moreover, there was a bearish trend line formed with resistance at 7650 on the hourly chart of BTC/CNY (data feed via BTCCHINA), which was broken during the upside. Lastly, the price moved past the 100 hourly simple moving average.
All in all there are positive sign, but the price is currently struggling to clear the 76.4% Fib retracement level of the last drop from the 7900 high to 7294 low. However, on the downside, there is a crucial bullish trend line formed with support at 7720 on the same chart.
So, as long as the price remains above the trend line support and 7700, it may challenge the 7900 level once again.
The hourly RSI for BTC/CNY is positioned above the 50 level, and suggesting more gains.
Chart Source – TradingView.com and data feed by BTCCHINA