Binance Coin [BNB]: Why you should take advantage of this short opportunity

ambcrypto.com:

Disclaimer: The information presented does not constitute, financial, investment, trading, or other types of advice and is solely the opinion of the writer. 

Bitcoin has been ranging from the $28.7k mark to the $30.6k resistance level over the past two weeks. Binance Coin has been one of the better performing top 20 altcoins (by market cap) in the past ten days and appeared to have a bullish structure on the price charts just a couple of days ago. Yet, the price faced rejection at a crucial resistance level, and the bullish bias appeared to have shifted bearish one more.

Source: BNB/USDT on TradingView

On the 4-hour chart, the price had been in a strong downtrend earlier in May and formed a lower high at $332.8 (white dashed). In the past week, the price has made higher lows as it rose from below the $250 mark all the way to the $335 mark. Moreover, the price broke above the downtrend’s lower high at $332.8 a couple of days ago, to indicate that the market structure could have had a bullish shift.

The Fibonacci retracement levels (yellow) plotted for BNB’s drop from $413.6 to $218.8 showed the $339.2 level to be the 61.8% retracement level. This area also had confluence with the longer-term horizontal level at $337.5 which had acted as support in January and February’s plunge in prices.

This confluence of resistance saw a rejection for BNB, and the price appeared to be headed for a session close below the $316.2 mark, the 50% retracement level. This could see the $316 level retested as resistance and a further drop in prices.

Source: BNB/USDT on TradingView

On the lower timeframe price chart, the uptrend of the past eleven days can be seen more clearly. It started when the price flipped the $280 area from supply to demand on 14