Binance Coin broke down beneath a triangle pattern in a hunt for buyers

The price is always attracted to liquidity. That had been a reason why Binance Coin repeatedly tested the $510 support level over the past two months and it exhausted the buyers at those levels. At the time of writing, the price was in search of an area where buyers would be similarly interested once more. The $445 level leaped to the eye as support. However, the pertinent question here is- Could Binance Coin embark on one further leg southward to $400?


Source: BNB/USDT on TradingView

Binance Coin formed a descending triangle pattern (white) as it repeatedly tested the $445 area as support, but the price broke down beneath it.

The $445 level served as strong support in October, where the sellers were absorbed. In fact, the price had a strong impulsive reaction and bounced off the level. It went on to climb as high as $670 in the days that followed.

Once more, the $445 area was likely to have a heavy batch of buyers, and the price could react positively. Thus, it could move upward once again.

The move from $254.5 lows in August (another demand area) to the $669 highs were used to plot Fibonacci retracement levels, and the price was also below the 50% retracement at $461.9.

Generally, buyers are interested in an asset at the 61.8–78.6% retracement levels, and for BNB, that represented the $343-$413 area.


Source: BNB/USDT on TradingView

The daily RSI was at the 28–30 mark once more, a level it had last been at in May when the price crashed from $670 highs to $254 low. This suggested that the price was close to finding a bottom, although an exact bottom can not be determined based on RSI alone. The RSI fell below the 28 value during March 2020 on the Covid crash.

The OBV also slipped beneath a level (orange) that had held firm since October. In fact, the CMF also slipped beneath -0.05 to show that capital flow was headed out of the market, but as the OBV indicated, this had already been the case for a few weeks now.

The indicators showed strong selling pressure. The price charts showed $413 and $445 as strong support levels. Well, $400 could be a place where a candle could wick to or even close at. A trading day close below $461 (50% level) would likely mean BNB was headed to the next level of retracement at $413.

forex and cryptocurrency expert trader; telegram-

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

How to Avoid Rug Pulls in Cryptoverse

The Uncharted Territory of Post-ICO Engagement

BINANCE FUTURES; Your Future is Now!

Want Your Crypto Startup to Survive? Embrace Reality and Build a Regulatory Moat

A ‘burn’ after-party: Bigger Entertainment to burn 176 million SHIB post Christmas

Create Your Own NFTs

Leopan Gamers NFT — Metaverse

Implementing Cryptocurrency Payments in Magento 2 with CopPay Payment Gateway

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store


forex and cryptocurrency expert trader; telegram-

More from Medium

U.S. FTC Gives Notice on New Scam Involving Crypto ATM Machine

Binance Smart Chain’s record-breaking maneuvers can have this effect on Binane Coin

Crypto Weekly Outlook (Bitcoin, Ethereum, Cardano & Solana)

A top Treasury official urges Congress to pass regulatory guidance soon, claiming the risk to…