binance coin bnb
Binance Coin (BNB)

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

Michael is a professional trader and cryptocurrency technical analyst with many years of trading experience. He became passionate about cryptocurrencies and blockchain technology through his sister and has since been following the industry


Please enter your comment!
Please enter your name here