Technical Analysis and Market Entry: BNB/USDT Subject To Another Heavy Fall
- Binance Coin has been falling for five consecutive weeks, dropping as much as 76%.
- BNB/USDT successfully achieved the downside targets noted in the previous article, with further moves still eyed south.
BNB/USDT: Recent Price Behaviour
Binance Coin has been under some heavy selling pressure over the past weeks. The noted downside targets in the last BNB article were successfully achieved. BNB/USDT had plummeted from our observed bearish flag structure, as the sellers successfully capitalized. The price recently was forced down to the lowest levels seen since February 2019.
BNB/USDT has also encountered its worst run of weekly losses seen on record. It has been falling for five consecutive weeks, dropping from heights of $27 down to the $6 territory. Binance Coin had shed some 76% within the noted period, as the markets went into panic mode.
The signal for the latest market downturn spotted at the weekly closure of 10 February. A bearish evening star formation was produced, which was an indication that a change in trend was occurring. The confirmation came with the following week, which also saw a negative close; this was enough to commence the selling.
Weekly Chart View
BNB/USDT had initially been on such an encouraging run to the upside from the start of 2020. It rallied from depressed levels of $12, rising up to heights of $27. The price had not traded as high as it did since August 2019, a prior area that had previously served as critical support.
Market bulls attempted to break back above, however, were dealt with a rejection blow, sending the price back down to the south. Despite the heavy falling already observed, there still appears to be room for a greater downside. BNB/USDT is yet to provide a signal of a change in trend, with the bears in control. The current weekly candle at the time of writing has enjoyed a pullback, retesting a critical zone at $14.
Given the short-lived nature of the recent squeeze north, vulnerabilities remain primarily tilted to the downside. Price action via the daily chart view has formed a bearish evening star candlestick, which would suggest another incoming fall.
Technically, BNB/USDT has also seen the formation of a bearish flag structure, making the price subject to a breakout south. Should this be capitalized on by the sellers, then it could spark a strong wave of pressure to the downside. An entry is desirable from the current market price. In terms of targets to the south; $8.00, $6.00 and then $5.00. Stops to be placed above the noted flag at $14.30.
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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