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The global cryptocurrency market, driven by Bitcoin, has been very volatile in recent months. While there have been many efforts to rebound following the May 19 sell-off, most cryptocurrencies have been unable to maintain higher levels on their own charts. The most recent recovery effort occurred in late June, when the market began to rise. However, repeated waves of selling pressure finally nullified the same.
Binance Coin, unlike most of its peers, was able to maintain its upward trajectory. Having said that, the development of an up-channel has raised some worries about its long-term course. BNB was trading at $306 at the time of writing, down by 3.5% over the last 24 hours.
Binance Coin Daily Chart
Buyers re-entered the BNB market after it fell to a low of $224.8 on June 22nd, re-starting an uptrend. This resulted in the creation of an uptrend, with BNB finally reclaiming the zone above its 38.2% Fibonacci Extension around $310. However, the 50-day simple moving average (yellow) and 50 percent extension barrier ($336.3) established a solid resistance zone, preventing any additional gain.
At the time of publication, the alt’s price was testing the 38.2 percent Extension, with negative pressure still present. As a result, BNB levels are anticipated to fall in the coming days. A significant support region was at the 23.6 percent Extension at $277.4, which was curiously near to the Point of Control for the Visible Range.
The Squeeze Momentum Indicator indicated that bullish momentum was waning, as seen by its falling green bars. While the market was now in a squeeze, indicating that BNB would drop slowly rather than in a sudden sell-off, losses might accelerate if volatility increased.
The Relative Strength Index has been trading near equilibrium for the last nine days, but its inability to move beyond 50-55 was an indication of weakness. The MACD was closing in on a bearish crossing as purchasing pressure faded on the charts.
The aforementioned considerations are concerning for BNB, and a closure below the $290-level and the 200-SMA (green) may precipitate the next sell-off — a scenario that could push the market below its 23.6 percent Fibonacci Extension before bouncing again. Meanwhile, traders might wait for a temporary recovery and start a short trade around BNB’s 50% Fibonacci extension of $336, exiting at the Visible Range’s POC of $260.