Binance Coin Technical Analysis: (BNB/BTC) Looking For Support To Continue Breakout
Binance Coin continues to uptrend against BTC despite the current bear market, gaining 116% over the past 3 weeks, going from 8,718 Sats to 18,885 Sats.
At the time of writing, BNB is positioning itself to break above a key resistance at 18,550 Sats again, having temporarily breached this level twice already before falling back down.
Overcoming this level will be crucial for the survival of this continuing uptrend.
Looking at the 4hr chart above, we can see a potential “Cup and Handle” pattern forming where the previous uptrend closed out at the same height of the current trend, to establish the ‘rim of the cup’, with a deep bowl of candles performing in between creating ‘the cup’.
In order to complete this bullish pattern we will need to see BNB fail to break beyond the resistance and retreat back down to the lower support at 17,000 Sats. From there, the price action should curve back up to the resisting level as bulls overtake the sellers once more, and breakout above to complete the ‘Handle’.
Looking at the Ichimoku indicator, the senkou cloud (yellow) is projecting a support area which meets the plotted secondary support line for the cup handle. This is further confirmation that should the bulls tire, we would likely see the price rebound from this point.
Looking at the RSI indicator below, momentum for the asset has been uptrending well along the lower support line since the middle of the cup. It is not recording the current uptrend as overbought/above the channel, which implies BNB still has room to climb. Volume for the asset however, appears to be thinning out which would suggest that buyers are struggling to maintain their support.
MACD further supplements this with the faster MA crossing below the slower MA and bearish volume bars appearing beneath the central signal line.
Binance (BNB) Price Prediction
At the time of writing BNB is up 1.67% against BTC. The bulls exhaustion is beginning to show on the momentum indicators and it’s likely that we’ll see a brief decline back to 17,000 Sats before they rally again.
Using Fibonacci retracement above the trend, we could see a short-term price target of 19,700 Sats around the 0.382 fib level before correcting. This would be a further 6% rise from the current price point.This article appeared first on Cryptovest
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