Binance Coin finally underwent a correction after experiencing a consistent rally for eight weeks. The price plunged to January 18 low and sharply bounced off. Right now, it looks calm and prepared for another surge.
A week ago, BNB lost a key support level and further fell through the $300 psychological level after printing a two-month high at $337.5 on its native exchange.
After the price fell to $283 on Monday, BNB recovered a little and has remained indecisive. However, it attempted to reclaim the above psychological level yesterday but witnessed a rejection there. The price will continue to fall if Bitcoin plummets below the holding of $22k.
Meanwhile, it has been trading inside an ascending channel since June 2022. This pattern looks like a bear flag on the weekly chart. Should the price collapse beneath this channel, BNB is expected to trade significantly below the $180 mark.
A head and shoulder pattern could be in play on the daily chart. If the asset manages to buy back above the $260 level to form a right shoulder, we should expect a quick recovery back to the recent high before breaking higher.
BNB is currently bearish. It has shed about 12% loss in the past week, with a market cap of $47 billion at press time.
BNB Key Level To Watch
Source: Tradingview
If the expected H&S pattern comes into play, the current holding level to watch is the $300 mark, followed by the $318.4 resistance level.
There is also resistance at $320, the lost support level during last week’s surge in volatility. A break above the two-month high will trigger a massive buy to $360 in no time.
In continuation of this decline, it would need to lose the Monday low before looking for another support level at $270. The $261 level is the following support to pay attention to for more crackdowns. BNB’s oversold level lies at $248.5.
Key Resistance Levels: $300, $318.4, $337.5
Key Support Levels: $283, $270, $261
- Spot Price: $296
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: slavstan/123RF // Image Effects by Colorcinch
