Despite recent market falls, BNB remains strong on the weekly outlook and simultaneously forms a continuation pattern on the daily. The bullish signal may turn invalid if the latest supply outweighs demand.
Yesterday saw BNB through a slight retracement after experiencing a 5% cut in price since the start of the week. The retracement ended at $581 and the price rolled back due to the fresh sell-off that hit the crypto market again.
It has seen an additional 3% drop overnight as the price faces Tuesday’s low. A strong daily candle closed below this low would confirm a short-term sell before locating a threshold level to resume mid-term bullish. That may come into play before Bitcoin’s halving takes place.
However, there’s still hope for the bulls with the forming bullish pennant flag on the daily chart, which technically suggests a continuation pattern of the existing bullish trend.
We can see that the lower highs and the higher lows formation in the past month indicate that a fresh increase might be around the corner for this pair.
But considering the new sell order in the crypto space, this bullish setup might become invalid soon. And if the buyers regroup well and manage to counter the latest selling pressure, we can expect an upward movement. That should put the bulls back on track for a bigger gain.
BNB Key Level To Watch
While facing down, the $564 level stands as weekly support. A crack below it could trigger a liquidity run to the $536 level before retracing. The lower level to consider for the next swing would be $496.
If the bulls retake today’s high, the potential resistance level to keep in mind would be $600. After that, the $623 and $635 levels would be the next buying target for an increase before breaking to $669.
Key Resistance Levels: $600, $635, $669
Key Support Levels: $564, $536, $496
- Spot Price: $576
- Trend: Bullish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: ximagination/123RF // Image Effects by Colorcinch