Technical Analysis and Market Entry: BNB/USDT Bulls Breakout of Pennant Pattern
- Binance Coin has been pushing to the upside for some five weeks, gaining 45%.
- BNB/USDT price action breaks out of bullish pennant structure, leaving the door open to greater upside pressure.
BNB/USDT: Recent Price Behaviour
Binance Coin is enjoying a strong move to the upside; the price has gained an impressive 45% over the last five weeks. It came as BNB bottomed out at the back-end of 2019, down at depressed levels of the $12.00 territory. At the time it was the lowest the price had been since March 2019, having given back much of the early 2019 bull run.
The current run to the north is looking increasingly encouraging, seeing the most consecutive run north since October. Market bulls will be looking to make a committed breakout of the downward trend, which has been in play since June 2019. Binance Coin, like many of its peers, entered into a harsh bear market, following a bull run commenced at the start of 2019. BNB/USDT was forced to drop a chunky 68%, after a 752% gain.
A bearish price structure is dictating price action as earlier detailed. Rallies in BNB/USDT have remained vulnerable to being sold by the bears. For the bulls to break free of this trend, the last rally area must be broken down. It can be observed around the $21.00 mark, last seen during the week of 11 November. The candlestick via the weekly chart view will need a closure above this region, to encourage further buying momentum.
Daily Chart View
BNB/USDT via the daily chart view has recently been consolidating, which has been seen since 15 January. It came following a critical break above a daily resistance, $16.30; it previously served as support. The move back north of this level is a strong positive for the bulls, allowing them to build foundations from here. Price action has confirmed over the recent sessions that this is once again a support area for BNB.
During the recent consolidation that has been observed since 15 January, BNB/USDT has formed a bullish pennant structure. The narrowing in price action led to the construction of the pattern, setting it up for further upside pressure. At the close of the 27 January session, the price managed to close above the pennant.
Given the above-detailed pennant, buy positions from the current market price are attractive. Targets to the upside are seen at; $20, $22 and then $25. Stops to be placed below the structure and detailed daily support at $16.15.
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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