- Binance Coin has ascended with a lower volume than the previous decline.
- The RSI has space to climb but broke through support on the last pullback
- Invalidation of the bearish thesis is a breach above $350.
Binance Coin price could be setting up for another decline. Key levels have been identified.
Binance Coin points south
Binance Coin price has been trading within a congested zone throughout September. The bulls have hurdled both the 8-day and 21-day simple moving averages, which is likely to entice sidelined traders to enter the market. However, the Relative Strength Index paints a different picture of what is going on.
Binance Coin currently auctions at $287. The Relative Strength Index shows the downtrend breached through the definitive line in the sand that would constitute a market bottom. The BNB price breached through an ascending parallel channel that the bulls are currently retesting.
Lastly, the Volume Profile is still less than the previous uptrend, which was far fewer transactions than the declining rally that brought BNB into the current range. BNB will need to rally impulsively, (presumably near the $350 order block) to show the technicals necessary to invalidate the bearish thesis.
BNB USDT 1-Day Chart
Thus traders should be cautious as Binance Coin should be more bearish in the short term than meets the eye. A Fibonacci Projection level using the previous swing highs in August and swing low in September shows the bears could induce a seller's rally towards $220 if the technicals are correct.
If the BNB price does fall to $220, traders may want to consider dollar cost averaging some BNB for the long run, as the on-chain analysis still shows significant lock-up of the decentralized exchange token. Currently, BNB has 21 million tokens in circulation, a supply last witnessed in 2020 when BNB traded at $14 just before the infamous 5x rally by 2021.
Santiment's Price, Circulaiton, and Actve Wallet Address Indicators
In the following video, our analysts deep dive into the price action of Binance Coin, analyzing key levels of interest in the market. -FXStreet Team
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.