Technical Analysis and Market Entry: Binance Coin on Course to Give Back All 2019 Gains
- Binance Coin continues to be hammered by the market bears, trading at four-month lows.
- BNB/USDT price action breaks out to the downside of a bearish pennant structure, making way for another wave of selling pressure.
BNB/USDT: Recent Price Behavior
Binance Coin has continued to face harsh selling, dropping to four-month lows. The BNB/USDT trend is heavily tilted to the downside, which has been the case since 22 June after running up to an all-time high at $40. It has dropped a substantial 50% since the noted high print, as the bears work for a full reversal of the 2019 bull run.
BNB/USDT had gained a whopping 600% from the start of 2019, initially trading down at lows of $5. Momentum was very much aggressive to the upside, something that outperformed the rest of its peers. Price action was supported to the upside by a long-running ascending trend line, which was seen breached by the bears.
Bearish Pennant Breakout
BNB/USDT price action had recently been moving within consolidation mode. During this price behavior, it formed a bearish pennant structure, which took place between 30 August-11 September. The bears managed to force a breakout to the downside, inviting a fresh wave of selling pressure.
Given the recent technical development, as described above, it does leave the price exposed to further downside movement. BNB/USDT has recently been caught by a demand zone around the psychological $20 mark. The price last traded here back in May, as the bears continue to push for a full reversal of the 2019 bull run.
Binance.US Begins Onboarding Phase
The world’s largest cryptocurrency exchange by traded volume, Binance, announced that Binance.US has opened its onboarding phase. It has begun to create and verify new accounts after Binance International closed for US-based traders, only allowing withdrawals.
Furthermore, it will start preparations for phase two, which will see the launch of active trading. The arrival of Binance to the US will somewhat fill the void left by a series of delistings from the likes of Bittrex and Poloniex. There is potential for the new exchange for exposing a new batch of altcoins to US-based demand.
BNB/USDT has achieved the first target area of interest, as noted in the previous article, at the $20 mark. Eyes are on a retest of the bearish pennant structure, around $21.50, ahead of further moves south. Targets to the downside are seen at $18.00, $16.00 and then $15.00. Lastly, stops would be placed just above the noted pattern at $22.75.
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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