BNB Bearish Cycle is on Edge. Here’s Why

Jay Crypto

Blogger

We will take the exciting journey of exploring the BNB bearish cycle in this blog. BNB might have a bearish outlook, but for the past few days, the asset has been showing its muscles. Let’s see how BNB is doing right now. 

How is BNB Performing in Crypto Space?

After showing strength in the crypto market for a few days, BNB is back to test its support at around $275. Currently, the asset is moving slightly above this important support. CoinGecko data shows that the 5th ranked asset is trading at this price level with little to no change in the past seven days. It might be surprising that BNB has had a price decline of only 21% from the last year. This decline is nothing compared to other assets that have lost 60%-80% in this year alone. The loss of the asset from its all-time high of $686 price level is almost 60%. 

CoinGecko

On CoinMarketCap, Binance Coin [BNB] was the largest exchange token by market capitalization and was ranked seventh. Since early 2021, it has experienced significant growth. The coin dropped from $650 in November 2021 to $200 in late June during the bear market of the previous year.

Binance has also been doing well, and most analysts anticipate that this pattern will persist. BNB might rank among the ecosystem's giants in a few years. However, things may not seem quite as good next month.

The BSC News-hosted BNB Chain Web3 Accelerator Program, Top Ten Vietnam Stars Twitter Spaces, is already over. Nine projects that were identified as Vietnam's Web3 innovation leaders were invited to participate in the two-day event and were asked to respond to a series of questions and share their objectives. 

Let’s see look at the price analysis of BNB in different time frames to analyze why BNB’s bearish cycle might be short.

BNB 1D Chart

In the image below,  the support and resistance zones are highlighted. Early in August and in the middle of May, the $336 level resoundingly rejected bullish attempts. The $300 mark was also psychologically significant. Therefore, as bulls and bears vie for dominance, the area nearby may appear on the order books as a vast battlefield.

TradingView

The bears controlled this area as of publication. An effort to reach the $300 heights earlier this month was postponed, and a retest of the $260 zone was carried out. Since August, when the $300 level was changed from support to resistance, the market structure has been bearish for Binance Coin.

In the coming weeks, this bias will continue. When BNB reaches $300, sell, and start looking for buys around $260.

BNB 4H Price Chart

For Binance Coin, the longer-term market structure was bearish. This indicated that a trader could search for shorting opportunities on the 4-hour chart. Again marked in red, a bearish order block occurred near the $300 level. A 4H order block and a critical level coming together signaled that high probability short positions may become available in the days to come. The Relative Strength Index (RSI) was somewhat bullish at 55. In reaction to the increase from $260, this was done.

TradingView

The Awesome Oscillator (AO), which was just over zero, was trending slightly in the other direction. Since June, the Accumulation/Distribution (A/D) line has been trending upward, but it has been flat for the last two weeks. 

What’s Next?

Price movement was very supportive of a shorting opportunity at the $300 level. The long-term structure should change to positive if the price moves past this level. However, since Bitcoin has fallen below the $19.6k resistance, the next week calls for caution.

Binance Coin might be able to overcome its resistance with a move of BTC above $20,000. The bearish theories put out in this article would be rendered invalid in such a situation. After a retest of the $300 area, downward objectives would be $260 and $240 till then.