BTCCNY Price Technical Analysis: Upside Consolidation Break!

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BTCCNY has been in consolidation for the past few days, moving inside a rising wedge pattern visible on the 1-hour chart. Price just recently made an upside break from resistance around the 7300.00 mark, signaling that it’s ready for more gains. The chart pattern spans 6900-7300 so the resulting rally could be of the same size, taking BTCCNY to 7700 eventually.

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. Also the gap between the moving averages is getting wider, which suggests that bullish pressure is getting stronger. RSI is on the move up so BTCCNY might follow suit while stochastic is heading north as well.

Both oscillators are nearing overbought levels, which hints that buyers might book profits off their long positions fairly soon. This might happen once RSI and stochastic start turning down from the overbought region to show a return in bearish pressure. In that case, BTCCNY could pull back to the broken wedge resistance before heading further north.

Concerns about the Chinese government crackdown on bitcoin exchanges and traders seems to have faded, allowing investors to put their funds back in the cryptocurrency. After all, geopolitical risks remain in the markets so traders might be keen to pursue higher returns on alternative assets like bitcoin versus traditional ones like stocks and currencies.

Still, there might be some degree of unease when it comes to these bitcoin rallies as it might attract government attention once more and prompt officials to increase their efforts to curb bitcoin activity in the mainland. Recall that several exchanges had to introduce higher transaction fees on trades or cease offering margin accounts on bitcoin in order to discourage clients from risking too much in a volatile market. Also, authorities continue to dampen offshore investment activity in order to keep funds in the mainland while curbing yuan appreciation.

In any case, reports that First Global Credit added Chinese stocks for bitcoin-backed trading is good news for the market as it could bolster liquidity. According to First Global Founding Director Marcie Terman, bitcoin can provide access to opportunities that had previously been the domain of professional or relatively wealthy investors to a much wider audience. “Through the medium of bitcoin, First Global makes it possible for investors from around the globe including the developing world to have access to profitable trading opportunities that simply would not have been possible before bitcoin,” she explained.

This could be a gamechanger for the industry, particularly with the platform’s Currency Switch feature which allows clients to take advantage of bitcoin price moves while trading other markets simultaneously. “We are now serving growing numbers of traders in Africa and Latin America, as well as parts of Asia including Indonesia, Malaysia and even Nepal,” added Terman.

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With an upbringing rooted in deep ethical values, Yashu Gola knows how to put honesty and dedication into his articles. This young and dynamic financial analyst has done his graduation in IT engineering. His interests in financial writing have once brought him to our digital doorsteps. Since then, he has been an integral part of ForexMinute.com and writes the most captivating news-articles on the foreign exchange industry, cryptocurrencies, and medical marijuana trading.