Altcoins

Binance Coin [BNB]: Why you should take advantage of this short opportunity

Disclaimer: The data introduced doesn’t represent, monetary, funding, buying and selling, or different forms of recommendation and is solely the opinion of the author. 

Bitcoin has been starting from the $28.7k mark to the $30.6k resistance degree over the previous two weeks. Binance Coin has been one of many higher performing high 20 altcoins (by market cap) previously ten days and appeared to have a bullish construction on the value charts simply a few days in the past. But, the value confronted rejection at a vital resistance degree, and the bullish bias appeared to have shifted bearish another.

BNB- 4 Hour Chart

Shorting opportunity on Binance Coin after a drop beneath support

Supply: BNB/USDT on TradingView

On the 4-hour chart, the value had been in a powerful downtrend earlier in Might and shaped a decrease excessive at $332.8 (white dashed). Up to now week, the value has made increased lows because it rose from under the $250 mark all the best way to the $335 mark. Furthermore, the value broke above the downtrend’s decrease excessive at $332.8 a few days in the past, to point that the market construction may have had a bullish shift.

Blog New Ap Pricing e1637002475474

The Fibonacci retracement ranges (yellow) plotted for BNB’s drop from $413.6 to $218.8 confirmed the $339.2 degree to be the 61.8% retracement degree. This space additionally had confluence with the longer-term horizontal degree at $337.5 which had acted as help in January and February’s plunge in costs.

This confluence of resistance noticed a rejection for BNB, and the value gave the impression to be headed for a session shut under the $316.2 mark, the 50% retracement degree. This might see the $316 degree retested as resistance and an extra drop in costs.

Kryll - Automated crypto trading made simple

BNB- 1 Hour Chart

Shorting opportunity on Binance Coin after a drop beneath support

Supply: BNB/USDT on TradingView

On the decrease timeframe value chart, the uptrend of the previous eleven days might be seen extra clearly. It began when the value flipped the $280 space from provide to demand on 14 Might, and the value has rallied increased since then.

It can be seen how essential the $316 help was over the previous 4 days, because it has been examined a number of occasions. Nonetheless, latest hours of buying and selling noticed this degree damaged in a single session, and a retest of this former help zone as resistance may supply a shorting alternative.

The stop-loss of such a brief place could be simply above the resistance zone, at $324.2, whereas the take-profit lies on the zone of demand at $296 the value posted a latest transfer upwards.

Shorting opportunity on Binance Coin after a drop beneath support

Supply: BNB/USDT on TradingView

The 1-hour indicators for BNB present that bearish momentum has been robust and that promoting quantity has been heavy previously few hours. The RSI and the AO dived under their impartial traces to point out vendor dominance. The OBV additionally slipped beneath short-term help ranges and may very well be headed a lot decrease.

Conclusion

General, the flip in construction on the 4-hour, mixed with the 1-hour charts and the indications, instructed that Binance Coin may transfer additional south towards the $295 zone. For any commerce, technical evaluation is just one facet, and threat administration and commerce psychology are simply as essential. Therefore, the dimensions of the brief place have to be allotted in such a manner that solely 2% of the buying and selling capital is in danger upon entry.

Source link

Related Articles

Leave a Reply

Back to top button