BNB finds some demand but forms a bearish pattern as it nears resistance zone
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
A little more than a week ago, the price of Binance Coin crashed straight through the $417 and $413 support levels but found some demand at the $343 level. This buying pressure has slowly built in recent days and the price of Binance Coin has seen some gains at the same time. However, the near-term outlook for Binance Coin was not yet bullish. Binance continues to remain one of the largest exchanges blockchain infrastructure providers.
Source: BNB/USDT on TradingView
The Fibonacci retracement lines (yellow) were plotted for BNB’s rise from $254.5 to $669.3 in 2021. At the time of writing, the price has bounced almost exactly off the 78.6% retracement level.
The entire pocket from 61.8% to 78.6% retracement level is an area where investors seek to buy a retracement on an asset in anticipation of a run back toward and beyond the previous highs. This could well materialize in the months to come for BNB. Yet, Bitcoin approached an area of resistance at $38.5k, and a rejection could see BNB shed all the gains it posted in the past week.
The price formed an ascending wedge pattern (white), a bearish pattern that, upon a session close beneath the pattern, can see the price plunge quickly back to $343. In the context of BTC (resistance at $38.5k, trading at $37.6k at the time of writing) and BNB (resistance at $400-$415, trading at $387 at press time) a move into this liquidity pocket can tease buyers into thinking a pump is incoming, while sell orders were more likely to flood the order book.
Source: BNB/USDT on TradingView
The MACD and the Awesome Oscillator climbed above the zero line to show some
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