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Binance Coin Price Analysis: 04 February

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Source: Pixabay

Binance Coin has been in a strong uptrend since early December. More recently, the past month saw BNB establish a strong base at the $36 level and the bulls have been able to defend this level, and push the price higher. The move above $50 was historic for Binance Coin and can be expected to serve as a strong level of support both from a technical and psychological standpoint.

Binance Coin 1-hour chart

Binance Coin Price Analysis: 04 February

Source: BNB/USDT on TradingView

On the hourly timeframe, the high at $53.67 saw some selling pressure emerge. The highlighted region spans $49.3 to $50.1 and should serve as a region of demand should BNB face a dip. However, the $52 mark should be ceded to short-term bearish pressure. Such a move could be in the making, as there were signs that bullish momentum and demand from buyers were waning in the short-term.

Reasoning

The RSI made lower highs to show weakening bullish momentum, even as BNB made slightly higher highs. This bearish divergence might not have fully played out yet, even though BNB has already witnessed a dip from $53.6 in recent hours to trade at $52.89 at the time of writing.

The OBV has also been making a series of lower highs over the past few days – selling volume was slightly higher than the buying volume and indicated that the bears could be beginning to take control.

Using the Fibonacci Retracement tool for BNB’s move from $39.6 to $53.6, some retracement levels are highlighted that can act as potential support. The 23.6% retracement level at $49.95 lies within the highlighted region of demand.

Conclusion

Over the next few hours, a dip to the $50 region of demand can be expected due to waning momentum and demand from buyers. However, the longer-term outlook is strongly bullish. Hence, the vicinity of $50 can give good opportunities to buy BNB.

The reaction of the price at the region of demand is important to determine the direction of the next move for BNB. Losing this zone could see a deeper retracement over the next week.

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A Biomedical engineering graduate, Yash focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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