Jonathan Morgan
Independent Analyst
- BNB price continues to reel after breaking critical support levels.
- Bulls attempt to recover most of Monday’s losses.
- Upside potential is now extremely high as volume pours in.
BNB price followed the broader cryptocurrency and risk-on markets to a major route yesterday. Binance Coin experienced a major collapse, falling more than 17%. However, buys have returned, and volume is increasing - giving bulls hope that a change in direction may occur soon.
BNB price is poised to reverse but could be limited to the $375 value area.
BNB price is in a dangerous zone for bulls on its weekly chart. Currently, Binance Coin price and the Chikou Span are below the Ichimoku Cloud. If the weekly chart closes at or below $361, it would close below the cloud and confirm an Ideal Bearish Ichimoku Breakout - a major warning that an extended downtrend will continue.
BNB/USDT Weekly Ichimoku Kinko Hyo Chart
However, if BNB price does close near $361, that would print a very powerful bullish reversal candlestick - powerful enough that it may negate any further downside pressure. Moreover, today's bounce certainly hints that a new upswing may occur.
A theoretical long opportunity exists for BNB price with a buy stop on the three-box reversal from the current O-column (currently at $335), a three-box stop loss, and a profit target at $380. If the current O-column moves lower, the entry and stop-loss follow in tandem, but the profit target remains the same.
BNB/USDT $5.3
The long setup represents, at present, a 3:1 reward for the risk. The projected profit target at $380 is likely to be limited near the $375 value area where the weekly Tenkan-Sen and bottom of the weekly Ichimoku Cloud (Senkou Span B) currently exist.
The theoretical buy setup is invalidated if BNB price drops below $285 before the buy stop would be triggered.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000
Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States. This time around, the NFP data is expected to cause a dip in the value of BTC.
Ripple is now only 3% away from becoming a bigger entity than Binance Coin
Ripple has overcome a lot of obstacles on its way to becoming the world’s fifth-largest cryptocurrency, as witnessed by the recent rise in XRP price. The native token of the world’s biggest crypto exchange, Binance Coin, on the other hand, has been moving in the opposite direction.
Ethereum leads altcoins north as Bitcoin halts amid bull trap fears
Ethereum (ETH) price remains northbound, unrelenting despite the king of cryptocurrency, Bitcoin, showing weakness. Behavior analytics tool Santiment observes that Ether and altcoins are on a tear even as BTC momentum fades.
BTC headstrong as Spot ETF talks reach technical stage
Bitcoin remains steadfast on the higher timeframe, amid news that spot BTC exchange-traded funds (ETF) discussions are now at the technical stage of approval. Specifically, talks with Spot BTC ETF issuers have advanced to key technical details, with Reuters indicating that it could signal a shift toward a potential approval.
Bitcoin price notes minor decline as US Nonfarm Payrolls report creation of 199K jobs
The United States Bureau of Labor Statistics (BLS), in its Nonfarm Payrolls (NFP) data, reported the creation of 199K jobs in the month of November, wildly surpassing the expectations of 180K jobs. This data, while expected to have a significant impact on the market, ended up being a low-impact event on Bitcoin price and other crypto assets.