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Analysis

Binance Coin traders can look at these entry opportunities

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Source: Pixabay

Binance Coin has been quick to react to a wider crypto recovery after yesterday’s losses. Its price rose north from the upper trendline of its ascending triangle, but key levels were yet to be toppled for a sharper rally. At the time of writing the world’s fourth-largest cryptocurrency, BNB was trading at $310.1, up by 4.6% over the last 24 hours.

BNB 4-hour chart 

Source: BNB/USD, TradingView

A look at BNB’s chart indicated an ascending triangle breakout, but the price had not yet overturned a resistance point of $320 just yet. Further above this mark lay the 4-hour 200-SMA (yellow) at the $335 upper ceiling. This region also coincided with the daily 50-SMA (not shown) and Visible Range’s POC at $340. These levels had the potential to limit any additional short-term upside for BNB.

Reasoning 

BNB’s Squeeze Momentum Indicator noted declining bullish momentum over the past few sessions. A series of block dots suggested that a market squeeze was in effect and lower volatility could keep BNB restricted below its long-term moving average line. Relative Strength Index headed back towards neutral 50 but was expected to find support at this level according to its recent uptrend. Meanwhile, Directional Movement Index still presented a bullish trend as the +DI maintained above the -DI.

Considering the abovementioned factors, an uptrend was still active in the market but prices could fall back within their pattern before the next attempted breakout. The 20 and 50 SMA’s both floated around the $290-300 price level and could offer support if needed.

Conclusion 

BNB was yet to fully break north from its ascending triangle as bullish momentum receded in the market. Prices could find a resting zone slightly below the $300 mark before their next upswing. A fall back towards the 50-SMA would present better entry opportunities for traders.

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A business graduate with a keen interest in emerging markets across South East Asia. As a financial journalist, he covered stocks and market reports across Australia and New Zealand as well.