Binance Coin: BNB/BTC Reaches Major Support Area

Published 07/05/2019, 01:40 AM
Updated 07/14/2021, 10:35 AM

The price of Binance Coin has been steadily increasing since August 2017. The BNB price movement has been characterized by rapid increases and gradual decreases. On Apr 20, 2019, it made a high of 48,134 satoshis. The ensuing decrease took it to a low of 25,718 satoshis.

Weekly BNB/BTC

This support area is very significant since it is the level where the upward move in May 2018 ended.

Once the BNB price reached this area, it immediately bounced upward, creating a long lower wick.

Will the price break down or will the support area hold? Below, we are going to analyze the price of BNB in different time-frames alongside technical indicators in order to answer this question.

BNB Price: Trends And Highlights for July 4

  • The BNB price is trading inside a significant support area.
  • It is following a descending support line.
  • There is a slight bullish divergence developing in the RSI.
  • BNB is trading inside a short-term ascending channel.
  • Short-term moving averages are turning bullish.

Binance Coin Price: Descending Support Line

Since reaching a low of 29,399 satoshis on March 3, the price has been following the descending support line outlined below.

Daily BNB/BTC

The Binance Coin price has touched the support line four times. Furthermore, the line currently coincides with the significant support area outlined in the previous section.

Also, there is some bullish divergence developing in the RSI.

Daily BNB/BTC

While this divergence is quite insignificant, it is more pronounced in short-term time-frames.

Additionally, it is occurring inside a significant support area.

The divergence, however, is not sufficient in predicting an upward move.

Let’s take a closer look in the short-term in order to determine that.

Short-Term

The price of BNB is analyzed at two-hour intervals. The 10-, 20-, 100- and 200-hour MAs are added to the second graph.

In the short-term, the BNB price has been trading inside an ascending channel since touching the long-term support line on June 27.

2-Hour BNB/BTC

Furthermore, on July 2, it made an unsuccessful attempt at a breakout.

However, as soon as the price reached the 0.5 fib level of the downward move beginning on June 13, the price began a rapid decrease.

Also, the momentum is turning bullish, at least in the short-term.

A short-term bullish cross transpired on July 3, and a long-term one on July 4.

1-Hour BNB/BTC

However, while the BNB price is trading above the 10- and 20- period MAs, it is still below the 100- and 200-period ones.

However, by combining these bullish crosses with the divergence in the previous section and the significant support area, we can come to the conclusion that the price is likely to increase towards the resistance line which is currently at 34,000 satoshis.

Summary

The price of BNB has recently been decreasing until it reached a significant support area.

It is currently trading inside an ascending channel.

An analysis of technical indicators supports an increase towards the resistance line of the channel.

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