Bitcoin was one of the best performing currencies last week, rallying to a new all-time high. The rally made bitcoin’s market cap the largest it has ever been since bitcoin’s inception in 2009, according to Coinmarketcap.com. However, bitcoin is not alone in its rally. (…There is a word for that?) Currently, all of its cryptosite rivals are gaining in the same way. (…Except Binance.)
We had seen a number of reports over the last few weeks (here and here, for example) that Bitcoin had been in a frenzy, with the price of Bitcoin surging from a low of $300 to nearly $360 in just a few weeks. That didn’t last long, and over the last few days the price has crashed, with the price settling at $290. Could this be a sign of things to come for Bitcoin?
Summary of the situation
The Binance currency bears are trying to drive down the 20-day exponential moving average.
The NBB/USD is showing short bullish gains in the $291 – $295 range.
At the time of this writing, the price has risen to $294.
Binance currency price analysis: Price Overview
The BNB/USD trading pair has experienced a sharp downward correction on the 24-hour chart, from the $309 market opening price to the $291 support level. The Binance currency bears are trying to collapse the 20-day exponential moving average and push the NBB/USD price down to $276 – $264 lowers the demand zone. Unfortunately, price is already well below the 20-day EMA and the bulls are trying to build support at $291 and $295. For a new uptrend to the $300 level to find support, buyers will need to show volume and break through the important resistance level at $296.
Our analysis of Binance coin prices reflects the bear market that could result from rising inflation in traditional assets and equities. However, some industry experts see rising inflation rates as a signal to buy bitcoin (or another digital currency). Binance Coin usually has a large number of investors who are still betting on a price rally. Therefore, the bulls hope to reverse the downtrend and return above $305.
A bearish triangle began to form on Monday, signaling a downward correction towards $334. The descending triangle ends at $290, and any further weakness below this point could result in catastrophic losses. There is less chance that levels below this point will be retested in the $280 area; it is more likely that buying volumes will strengthen and create a positive uptrend against the two price barriers at $296 and $300.
Binance price movement in the last 24 hours: High resistance between $291 and Monday’s high
In early June, Binance Coin was already trading in the upper $420-$430 range. Buyers then tried to reach the highest price of the year ($691 per ounce), but mid-month they faced insurmountable pressure from sellers. The currency fell to its current price target of $334 on the 15th. June, corrected significantly to $226 on June 21, and then recovered to $340 in early July.
Recently bullish attempts failed to rise from $298 to $340 by a few pips, before falling back below $300 on the 24-hour chart. Sellers are now more than willing to intercept any uptrend and pull price to the $280 – $300 level. The falling moving average strongly supports the bearish rally and increases selling pressure, creating more resistance around current support.
4-hour chart of Binance currency: Short-term volatility between $291 and $295
According to Binance Coin’s price analysis on the 4-hour chart, the NBB/USD is experiencing a short uptrend between $291 and $295. At the time of writing, the price has risen to $294, and there is a good chance that it will erase all losses in the short term. A morning drop could reverse the price action into a medium-term accumulation phase and save the bulls.
The relative strength index is close to the 30 mark and pointing upwards. The market talk index is high and strong price action is likely in the next 24 hours.
Binance currency price analysis number: Deep investors and the need for a break-out signal
The current price level is not a narrow range and on the 2-day chart, BNB could return to the $300 zone at any time. Traders, however, need a strong breakout signal to boost buyer confidence and pull price out of the dangerous $289 zone. The bears are still strong and aiming for higher lows and could try to correct the price towards $275. With momentum building based on short-term price analysis, it is likely that Binance Coin has an initial stop around $296.
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