Binance Coin (BNB) Technical Analysis: Consolidating Inside Bearish Descending Triangle Pattern
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Binance Coin bulls are looking fatigued today as the asset consolidates tightly inside of a 20-day bearish descending triangle pattern. For the past two months, BNB was tracking well inside a sideways wedge until a downtrending resistance dissected through the price action and obstructed the asset’s progress at the start of this month. The psychological support at 150,000 Sats has been propping up bullish traders for the last few weeks but momentum has started to show signs of weakening recently on a number of indicators, as bears gain the upper hand.
Diving into the 1D BNB/BTC chart, we can see that today’s candle is already starting to dip below the 150,000 support level as bearish selling pressure picks up.
- On the 1D, 4hr and 2hr RSI and MACD indicators, we can see that the indicator line has spiked downward and the 12MA has dipped bearishly below the 26MA as bulls struggle to hold on to the current support.
- On the 2hr Ichimoku indicator, candles have also fallen bearishly through the supporting kumo, which is a strong bearish reversal signal. There is also a negative T/K crossing between the Tenkan-Sen and Kijun-Sen lines.
- The CMF is also showing a clear increase in selling pressure over 2hr candles, as the indicator line diverges below the zero line.
At this stage we are looking at three main support regions where Binance Coin is likely to reach, which might give bulls an opportunity to fight back. If the asset falls below all three levels then it could potentially signal the start of a very harsh bearish decline.
Support 1: The first major support will be somewhere around the 145,700 Sats mark (-2.59% from current value), as the asset meets the uptrending sideways triangle support (black line). This is a fairly strong support but could be easily overcome if strong bearish momentum from this current consolidation phase carries through to this support level.
Support 2: The second support is down at the first neck-line level at 145,000 Sats (-3.06%), which has been a key support level in the past for Binance Coin. We should expect to see bulls attempt to push back at this level and try to climb back on to the support above. We could even see BNB travel sideways if volatility thinned out at this level and consolidate for a second time in the pinch point between this support and the downtrending level. Depending on market sentiment, it could continue bearish or start to reverse.
Support 3: This level at 140,700 Sats is the ‘danger zone’ for Binance Coin (-5.93%). If the asset falls beneath this critical support then it could spell doom for the asset over the short to mid-term. Historically, this support has held up Binance Coin through three bear marks since March this year. A decline below this level would signal to traders that confidence has departed from the asset and could trigger a heavy sell-off.