As expected, BNB advanced higher in the past week and completed the bullish head-and-shoulder pattern on the daily chart. Yesterday, it broke out slightly but now sits at the neckline as the price sets for a big rally.
This month’s bounce has restored the bulls’ hope after defending the $400 level during last month’s crash. They retook the $500 level and pushed the price consistently until the buying pressure exhausted at $562.
A short pullback from there slipped the price into the $527 level in the mid-month and the price went offensive again for a week to complete an inverse head-and-shoulder (H&S) formation at $600 last week.
It broke slightly out of the neckline to $616 yesterday and quickly lost steam due to a sudden rejection. This led to small drops today and as we can see on the chart, The price is now testing the neckline as support.
If BNB resumes buying, the main price range to watch for this inverse H&S breakout is $800 – bringing a 50% gain in no time. Although, it may face some obstacles on the way before reaching this price level.
There are currently no signs of selling. A drop below the neckline could cause a little setback for the bulls before regaining control. Nevertheless, it is important to note that the anticipated bullish party has just begun.
BNB Key Level To Watch
Following this bullish reversal pattern, the next target for buying is the $634 and $659 resistance levels, followed by the key $700 level. A flip through $720 should rally the price to the main target range.
BNB is trying to hold the crucial $600 level as support. If the price drops below it, the $562 level is a close support level to watch for a pullback. Other levels to consider for drops are $527 and $500.
Key Resistance Levels: $634, $659, $700
Key Support Levels: $562, $527, $500
- Spot Price: $601.8
- Trend: Bullish
- Volatility: High
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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