Closing of Binance Coin (BNB): A burn that looks like a wet squib?

The early 2021 Bull Run had done very well at BNB with a surge of over 1600% to reach an ATH of $677. It had then been badly harmed by the fall of May with a -60% bringing it to reach the zone of 260 dollars at the close. Following the recovery of Bitcoin, it almost reached its ATH again in November 2021 before coming to stand between $350 and $435. After a burn of $770 million in BNB we could have expected a resurgence. But this one went completely unnoticed in the current sideways trend. What will the BNB close tonight bring for information on this trend?

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A Daily close offering BNB a new low high

To fully understand the current trend, it is necessary to look back a little. We are currently in a sideways trend, also called Tidy, since January 22, 2022. This sideways trend has been very well respected with defined bounds. These held as support and resistance until March 27th. After this date, BNB broke the upward trend.

Price of BNB against dollars (1D)

Unfortunately, this breakout turned out to be a diversion, and BNB has since chained low fences. As the theory goes, when reintegrating a Range, there is a good chance after reintegration that the opposite terminal will be the next target. That’s the 356 dollars here. We also see that with the candles from yesterday and the day before yesterday, a close as is would validate a new lower high. Thus driving the continuation of a short term downtrend.

Bearish pullback and double top? A BNB close that looks bad

Zooming in to H4 I see several distracting things regarding a future close tonight. First of all we can see that we have been rejected since the day before yesterday on a price that gives us a perfect bearish pullback. This effectively confirms what we saw in Daily: we are forming from a lower top.

Price of BNB against the dollar (H4)
Price of BNB against the dollar (H4)

But the most disturbing thing, and what confirms my doubts, is the current formation of a double top. Indeed, we formed two tops trying to get past this bearish Pullback. And so a neck line has formed. A break with confirmation would definitively indicate the bearish continuation on the BNB. We will then look for the cash pocket of the order block present at 364 dollars on the curve. However, nothing to worry about for the moment since we expect to touch the lower limit of the Range. It is this bollard that must absolutely be kept on the fence to avoid a stall.

An ongoing H1 Range on BNB: a decisive breakout

The vision on the hourly time scale shows us a very interesting thing. Indeed, the resistance that serves the bearish Pullback seen earlier and the neckline of the double top are currently forming a sideways trend. We have been tracking this trend for 44 hours now. It is the breakout of this trend that will most certainly give us the direction of BNB for the evening.

Price of BNB against the dollar (H1)
Price of BNB against the dollar (H1)

A break above would probably lead us to seek the latest highs at $399 and $408. But this is not the preferred scenario. Looking at the Daily and H4 elements I would lean towards a break down in the evening in order to get the last dip at 377 dollars. Furthermore, if a fairly violent decline takes place and BNB closes below this low then we would seek liquidity at 364 dollars. A Pullback on the last trough then would definitively validate a drop and a retest of the lower limit of the Range.

BNB is currently chaining low fences and is also preparing to validate a bearish pullback and a double top. It is very likely that we will visit the last low recorded by the end of the evening. A close of the BNB below the latter would most certainly lead to the visit of the liquidity stated above before going to retest the lower limit of the sideways trend. Despite several burns since the beginning of 2022 and a name change, the BNB does not seem to want to recover for the moment.

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