After rising throughout last week, BNB slightly lost steam following a 5% decrease since the start of this week. The price appeared weak on the day as it stayed calm ahead of a major move lurking around the corner.
The past week of trading took BNB on an offensive rally following a back-to-back increase from $471 to $561.9 – the current monthly high.
Things quickly turned out negative this week after initiating drops from the mentioned monthly high. This brought the bears back into the market as they drove the price to $527 two days ago. The price recovered a bit from there and now trades calmly at $541.
This calm, which may lead to a big storm soon, indicates an indecision of where the price is likely to head next. However, the price is currently weak but is still trading within a buy zone on the monthly scale.
While deciding on the next direction, a dip below the recent monthly low should confirm an extension of the bearish correction until it finds solid ground.
Meanwhile, BNB’s inverse head-and-shoulder pattern is still intact on the daily chart. A push above the neckline should confirm a breakout and an end of the bearish correction as it changes the trend for a long-term gain.
BNB Key Level To Watch
Reclaiming the monthly high could pave the way for buying towards the $572 before tapping the pivot $600 resistance level where the neckline lies.
Considering a bearish move, the closest support for drops is $527, followed by $500. The monthly $471.3 low is the next level to consider with a potential breakdown to $427.3 and $400 – marked as the lowest level during this correctional phase.
Key Resistance Levels: $562, $575, $600
Key Support Levels: $527, $500, $471.3
- Spot Price: $541.5
- 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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