Technical Analysis and Market Entry: Binance Coin is Trading at a Make or Break Barrier
- Binance Coin is running towards its potentially fourth consecutive week in the green.
- BNB/USDT price has run into a significant barrier of resistance, also moving within a bearish flag pattern.
BNB/USDT: Recent Price Behaviour
Binance Coin price has managed to maintain decent momentum with its most recent bounce, as the bulls look to sustain a recovery. It comes after BNB came under heavy selling pressure between June up until September. The price dropped a whopping 65%, from the heights of $40 down to the recent low area at $14. BNB was forced to give back a chunky part of its 2019 bull run, falling back down to the lowest levels seen since March.
Nevertheless, another recovery has kick-started over the past going on five weeks now. There was a decent indication provided to the market via the weekly chart view, that the trend lower had come to an end. The closure of the candlestick for the week 30 September – 7 October, produced a morning star formation. These candlestick patterns tend to form at the end of a downward trend. A possible signal that the sellers have run out of momentum.
Following the above-noted morning star candle, the next week produced a solid green weekly closure. It was a solid confirmation that the sellers were no longer in control. BNB/USDT has gone on to rally a chunky 40% within the noted period, from $14 up to $21. It is the most consecutive run to the north that has been observed since February – April rally. Binance Coin is back to trading at levels latest traded in mid-September.
Make or Break Barrier
BNB/USDT price has in the latest week hit a strong area of resistance, within the $20-21 price region. It had not traded comfortably above this region since early September, a time when the market was titled largely to the downside. The noted territory has previously served as a reliable area of support, also being able to attract strong buying interest. During the bull run in the early part of 2019, this region was used as a platform to run-up to the all-time highs.
A potential buy position is being eyed, as the price sees a minor near-term pullback, ahead of further committed moves north. The rejection at the noted region $20-21 has forced the price to consolidate for now. BNB/USDT via the 4-hour chart view has formed a bullish pennant structure, subject to a breakout higher. Entry would be around the current market price, with targets at; $22.50, $23.00 and then $23.50 near-term. Stops to be placed just below the pennant at $18.85.
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.
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