/latest/2020/02/bnb-slams-into-major-resistance-after-a-week-of-surging-price-analysis/
Binance Coin (BNB) is back, after a week of surging as the altcoin market heats up. It is running into a hugely important resistance level on its BTC pairing; but with overbought conditions screaming, it seems unlikely to break this level on the current run-up.
Starting with the weekly BNB/Bitcoin chart, we must note the prominent resistance that BNB is banging against, at about ₿0.0025. We can see that BNB has already put in a higher high on this chart, and even a rejection here will give it a good chance for a higher low; and thus a setup for another attempt at this level (that is, if it holds now).
Coming in closer to the same chart, we see that BNB has broken through a major inflection level on the RSI; and that the histogram last week put in a major acceleration to the upside.
Turning to the 3-day BNB/Bitcoin chart, we see the exchange token getting overbought, rocketing to the top of the 3-day range and already far overbought on the daily. The present resistance has been clearly flipped to support, though, making a nice soft range for a potential retracement.
We have a clearly exceptional little bull run, here; but buying into such an overbought asset is simply dangerous. Of course, BNB could continue higher from here, but it’s more likely that the exchange token consolidates first.
Finally, on a daily BNB/Dollar chart, we see that the likely scenario of a retracement would revolve around the $22 inflection zone. This line falls in the middle of a retracement scale drawn from the recent market structure, thus making it a good candidate for a bounce or consolidation-magnet.
And again, we see that the RSI is screaming with its hair on fire, at a level of 85% – a level rarely enough seen on the daily to advise caution.
In the long term, BNB has likely just started a general bull market. However, on LTF and even MTF charts, it’s probably not the time to be buying in: wait for a correction if you’re FOMOing, and maybe think about profit-taking if you’re already in.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
Featured Image Credit: Photo via Pixabay.com
