Binance Coin Price Analysis: BNB Bears Have Breached Key Near-term Ascending Trend Line

  • BNB/USDT has been the subject of selling pressure, following an explosive run higher last week.
  • A positive update was provided from the Binance CEO, rounding off the year and detailed the 2019 goals for the exchange.

BNB bulls were enjoying a nice strong push higher from the 16th – 24th December, having gained as much as 45%. BNB/USDT rallied from $4.45 up to recent highs on the 24th at $6.47, before running into sellers. As seen across the crypto market, the bulls began to lose momentum, which has since seen the past three sessions closing in the red. Over the mentioned period when the price was moving higher, BNB was supported by an ascending trend line. This has been tested by the bears over the past few sessions. At the time of writing, the price is seen below this near-term support.

Strong Future for Binance and BNB

Binance CEO Changpeng “CZ” Zhao recently took to Twitter to share an end of year letter, sharing his thoughts on the developments in 2018 and what he foresees for the year 2019.

Binance has much planned for the coming year, in terms of upgrades, features and new development. There are also plans for global expansion, with Binance revealing it will open up to 10 fiat exchanges across the world.

Aside from the growth plans for the exchange, there is much focus and energy on the further adoption for its native token, Binance Coin.  The exchange will seek more partnerships and other leaders in varied industries. They are keen to increase the use cases and adoption of its token. This coming on the back of 2018, where they added no less than 50 partners who have adopted BNB into their ecosystems.

Technical Review – BNB

BNB/USDT 4-hour chart. Bears manage to force a 4-hour closure below a key near-term ascending trend line.

As earlier detailed, BNB/USDT is subject to further downside pressure, given the breach of the ascending trend line. At the time of writing, a 4-hour candlestick has closed below the important near-term support. Immediate comfort can be seen around $5.35 territory, where the price has formed a temporary bottom since the 25th December.

BNB/USDT daily chart. A failure to hold support at $5.35, could send the price falling to retest December bottom area.

Should the above-mentioned near-term support fail to hold, then another wave of selling pressure can be anticipated. Looking deeper to the downside, the next area of support will be sought at around the $4.50 level. This is the territory of which BNB/USDT traded at prior to the most recent bull run. Any failure of this holding, could be very much catastrophic, seeing the early December bottom area tested to the downside.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

 

 

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.