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Binance Coin Price Analysis: 29 January

Namrata Shukla

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Source: Pixabay

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

The cryptocurrency market is bleeding once again, with the value of Bitcoin steadily depreciating over the last few trading sessions, at press time. Meanwhile, the closely-linked altcoin market has also been highlighting the change in market momentum. On the contrary, Binance Coin [BNB] was visibly resisting the sellers’ pressure on the charts.

At the time of writing, BNB’s value was down by 2.46%, with the cryptocurrency trading at $42.57, at press time.

Binance Coin 4-hour chart

Source: BNBUSD on TradingView

The attached 4-hour chart for BNB underlined the long consolidation phase in the market. While the crypto’s price has been moving between $40 and $43 for a while, with BTC’s market plunging, a similar fate may befall BNB.

As previously highlighted, at the time of writing, its market was resisting the pressure from the bears, but the overall market trend and continued consolidation could push the coin’s value lower on the chart.

Reasoning

The volatility in the market was rising as the Bollinger Bands diverged. This suggested that traders were constantly pushing the price. Meanwhile, the trend was siding with the bulls. The 50-moving average seemed to be providing support to the price reaching the resistance at $43.

Given the bearishness in the rest of the market, BNB was increasingly becoming overbought, something that could mean that the buyers were pushing the value higher. On the contrary, the momentum in the market was also low at press time, a development that suggested that trend reversal would be difficult.

Crucial levels to look out for

Entry: $42.41
Stop-Loss: $43.69
Take-Profit: $40.05
Risk-to-Reward: 1.86

Conclusion

In light of the general market bearishness, it is likely that Binance Coin’s price might suffer a hiccup in the near-term. The short-traders might be able to take profit if the price is squeezed towards $40.


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Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.

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