Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Bitcoin appeared to promise a bullish breakout after it reached the $31.5k mark but was unable to push toward the $32k area. Emboldened bulls were caught offside as the prices reversed in recent hours.
Binance Coin also saw a similar story develop on the price charts. It found some support at the $295 mark over the past couple of days and was able to climb to $312, but it ran into a wave of selling pressure.
At press time, the price bounced from a demand zone. Now, the question is- Where could the price go next?
BNB- 1 Hour Chart
Over the past two weeks, BNB has formed a range between the $295 and $337 levels of support and resistance respectively. However, in the past few hours of trading, the price has decisively slipped beneath the $295 mark, and the previous lows at $290 (dotted red) were not defended either.
The $275-$280 mark is highlighted in cyan and it acted as a demand and supply zone on 12 May and 14 May, in the aftermath of the crypto crash alongside the LUNA fiasco.
BNB saw a candlewick reach as low as $276.5 before rebounding to $283.4 in recent hours. This bounce could be short-lived and could retest the former $290 lows as resistance and continue to sink lower.
The RSI on the hourly chart fell below the 40 mark to indicate strong bearish momentum. In the past few days, this level has acted as support. The Awesome Oscillator was also well below the zero line but appeared to form a green bar on the hourly chart to signal a possible bounce.
The A/D fell significantly in recent hours to show heightened selling volume.
If Bitcoin finds some support at $28.7k and can see a bounce, BNB is also likely to bounce from the $275 demand zone. However, its short-term trend remains bearish.