Binance Coin was witnessing a recovery on the hourly charts after a double top pattern dragged prices down by more than 10%. A support region of $ 390-395 managed to cut losses and the focus now fell to the crucial resistance zone. Closing above this would allow the bulls to take over the market in the short term and negate the risks of a prolonged decline.
At the time of writing, Binance Coin was trading at $ 403, down 4% in the last 24 hours.
Binance Coin hourly chart
Two highs formed at $ 435 led to a double top pattern and sellers were quick to capitalize on this bearish setup. Losses amounted to more than 10% when calculated from the second peak formed at $ 435 to a defensive line of $ 390, although a single candle fell as low as $ 386.06.
In response, buyers tried to push prices out of a $ 390-395 support region, but their efforts could be nullified at the $ 406- $ 410 upper bound. If an upside breakout is denied, BNB would have to defend the support. Mentioned once more about the selling pressure. A worst-case result could send BNB down to $ 375, which is another 6% drop from its post-time level.
There was some presence of buying pressure on the BNB indicators. Awesome Oscillator posted a series of green bars, while the MACD was close to a bullish crossover. A rise above each of their respective half lines would even present a buy signal.
In contrast, the RSI was still trading in bearish territory, pointing to another leg in the oversold zone before reversing. It is also noteworthy to mention that each of these indicators were not yet showing positive signals on the 4-hour chart, which meant that the short-term outlook for BNB was still unfavorable despite some buying momentum observed in the market.
The BNB market was rebounding, but the bulls weren’t out of the woods just yet. Prices would have to close above $ 406- $ 410 to avoid a retest of $ 390, from where a prolonged decline was possible. Meanwhile, the safest bet for traders was to wait for more developments before entering a long or short position.
This is a machine translation of our English version.
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