Market Analysis

BINANCE COIN PRICE ANALYSIS & PREDICTION (January 5) – BNB Drops To Its Lowest Price Level In A Week, Signals Retracement

After staying calm for a week, BNB found support and resumed buying pressure earlier today. The gains quickly washed following a sudden price drop. It lost 3% in the past two hours and now looking weak.

A month ago, BNB dropped to as low as $225 after a failed attempt to push through the $272 level. It entered a small consolidation phase and remained indecisive for days. 

The price later moved out of the consolidation phase and increased for two weeks to test a crucial resistance line, as shown on the daily chart. That increase led to a slight break above the previous resistance level. 

It pulled back from the resistance line and found support above the $260 level. The coin initiated another surge and flipped through this crucial resistance line to mark a new multi-high at around $338 last week. 

That multi-high level was rejected and the price slipped to a low of $306. It held this low-price level as support and quickly bounced back in the early hours of today, signalling a fresh increase.

But unfortunately, the bears intercepted buying and the price dipped to $293.6 just two hours ago. it recovered quickly to where it is changing hands at $307 at the time of writing.

While the market is highly volatile at the moment, a daily candle close above last week’s high will confirm more upward movement. 

Looking at the current price actions, the bears appeared back in action – more selling could take place. The broken resistance line may be retested if BNB continues to lose ground.

BNB Key Level To Watch

Source: Tradingview

If BNB manages to recover above the immediate resistance of $317, it must climb above the $325 and $338.5 levels before considering more upside movement. 

The closest support level for the bears right now is $303. A dip below the daily low could plunge the price to $285.8 and $272, retesting the broken resistance line.

Key Resistance Levels: $317, $325, $338.5

Key Support Levels: $303, $285.8, $272

  • Spot Price: $307
  • Trend: Bullish
  • Volatility: Low

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: moxumbic/123RF // Image Effects by Colorcinch

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