Binance Coin continued to lose momentum after witnessing a series of rejections over the past weeks. It cracked down a key pivot level earlier today and slipped near crucial support. More drops lie ahead.
On February 16, BNB initiated another short after marking a local top at $337. The short led to days of consolidation before activating a swing low.
Although there was not much volatility then until yesterday when it attempted to break down the crucial $300 support level. This support level was finally flipped today with an engulfing candle. The price is currently changing hands near a two-month support level.
The cryptocurrency looks extremely bearish on the 4-hour chart but the daily chart suggests that more bearish actions could be underway. While today appears to be the most volatile moment since mid-February, BNB is likely to paint an uglier scenario by the end of this week.
However, following the past days of drops, BNB’s price is stylishly maintaining a lower low and lower high pattern. This bearish pattern is likely to cause serious pain if the price continues to drop in the coming days.
The interesting thing here is that the price is still respecting the ascending channel. There’s still hope for the bulls.
If the price manages to collapse this channel due to the ongoing decline, the bulls will continue to suffer until they find a strong support level to fuel positive actions. For now, the bears are fully in control.
BNB Key Level To Watch
As the bears take charge now, support levels are to be considered more than resistance. The crucial support level of $283 is much more likely to suppress selling pressure for a while before breaking to $270 and potentially $261 in the future.
If the above crucial support level reacts to price actions just like what we saw in January and February, we may see a quick retest at $300. If the bulls reclaim this important level, the next area of interest would be the $318.4 and $337.7 resistance levels, where it initiated bearish actions last month.
Key Resistance Levels: $300, $318.4, $337.5
Key Support Levels: $283, $270, $261
- Spot Price: $288
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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