BTC/CNY Price Key Highlights
- BTC/CNY could be in for a strong rally, as a double bottom reversal pattern formed on its 1-hour time frame.
- Price is currently testing the neckline resistance around 1750.00, with an upside breakout likely to confirm that BTC/CNY might keep climbing
BTC/CNY is facing further upside, pending a break of the double bottom neckline, potentially taking price up to the previous highs near 1820.00.
Bullish momentum slowing down?
The 100 SMA is above the longer-term 200 SMA for now, which means that the uptrend is set to carry on. However, the moving averages are inching closer together, hinting that a downward crossover might be possible.
Stochastic just reached the overbought zone, which means that buyers are getting exhausted and might let sellers take over soon. RSI is already moving down from the overbought zone, which means that bears are starting to gain traction.
In that case, price could still pull back to the bottoms around 1720.00 before heading further north. This is also near the 200 SMA, which has held as a dynamic inflection point in the past. However, a break below those lows might indicate that a reversal is brewing.
Note that the 1750.00 level lines up with an area of interest or former support, which might keep further gains in check.
Intraday support level – 1720.00
Intraday resistance level – 1750.00
Charts from TradingView