BTCCNY has recently broke out of a descending triangle consolidation pattern, signaling its upside potential. However, price has still remained stuck in a range, although a bit of bullish momentum can be seen.
On the 1-hour time frame, an ascending channel can be drawn to connect the recent highs and lows of price action. BTCCNY is approaching the channel support once more, possibly waiting for more bulls to hop in at that area and push price back up.
Price seems to be bouncing off support at 4030.00 and could be aiming for the resistance at 4070.00 or higher. The 100 SMA is above the 200 SMA on this time frame, confirming that the path of least resistance is to the upside. Also, the gap between the moving averages is widening, which suggests strengthening bullish pressure.
RSI is on middle ground, suggesting that the sideways movement could persist. Stochastic appears ready to head south, though, so BTCCNY could follow suit. If so, a break below the near-term support levels could be seen and price could head to the dynamic support at the 200 SMA next.
Liquidity has been low in the cryptocurrency arena these days as investors seem to be more focused in equities and commodities, given all that’s going on in the OPEC and with Deutsche Bank. Earlier in the week, energy ministers announced that they already agreed on the need to cap output levels but have yet to decide on the amounts during their November meeting. Meanwhile, hedge funds have reportedly moved funds out of Deutsche Bank, leading analysts to worry that a banking crisis could ensue in Europe.
China is set to print its official PMI readings for the manufacturing and non-manufacturing sectors over the weekend. For today, the Caixin flash manufacturing PMI is due and a rise from 50.0 to 50.1 is eyed, possibly reviving demand for yuan-denominated assets and the Chinese currency itself.