The broad strokes of the venerable exchange token, Binance Coin (BNB), have been an extended period of retracement after achieving new all time highs during the summer of 2019. At the moment, BNB is retesting a critical support level, and if it holds here it could present a buying opportunity at a stable level.
We start on the 3-day chart to get a look at this level, which is derived from support all the way back in March, starting at $15. If this support holds, it will mean two things: First, it will be a double bottom to the retracement, which is often an opportunity for reversal (in this case, from a downtrend); second, we’ll see a bullish divergence on the RSI.
It might be a big “if” for price to hold in this region, however. The histogram is about to cross bearish on this high timeframe chart, which might drag BNB lower. For another thing, Bitcoin has returned to a downtrend for now, which tends to drag most other cryptos’ USD prices down with it.
Moving to a daily chart, we see that BNB has lately gone into oversold territory, and run away from the EMAs. Even if the exchange token doesn’t end up holding within the $15-13.60 support range, we are likely to at least see a bounce off of this level.
We see the histogram contracting back up from a low – no doubt helped along by the Bitcoin capitulation – and we are likely to see momentum swing up enough at least to test the 8 EMA, if not the 21 and 55 EMAs as well.
Finally, staying away of the Bitcoin side of things, we look at a daily BNB/BTC chart and note first of all the presence of a parallel, uptrending channel. It seems likely that this channel will be respected with a likely double bottom put in, and a histogram that looks ready to start contracting up. The base of this channel was built on notable support from the 2018 chart.
If it does hold here, a hidden bullish divergence on the RSI could likely propel price back to the top of the channel – and neatly into a resistance zone with several instances of reaction from price.
In short, on both charts there is a possibility for a trade setup. Beyond that, Binance has been looking for a bottom from 2019 highs, and there are some reasons to think it has found one. With Bitcoin dominance looking set to continue falling, maybe it’s time.
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