Like most largecap altcoins, the Binance Coin (BNB) is currently skidding off a likely bottom after a reasonable period of retracement. This comes after a very strong showing during 2019 – and, exceptionally among altcoins, even 2018. Although we see some likely further downside action in the short term, for the long term things are starting to perk up a bit.
Starting on the weekly BNB/BTC chart, BNB looks like it’s successfully retested a key support area after retracing 50% since April. Both RSI and MACD mirror this reading, with RSI going sideways nicely in its own support zone, and MACD ticking up for what looks like – a good deal further down the line – bullish cross in positive territory.
Volume has been relatively low since a mid-July spike. Just based on this, it looks very doubtful that BNB will breach this band of support, located between about ₿0.0023-5 any time soon. If and when RSI gets back above 50 on this chart, BNB could see another season of gains.
Despite this bullish long term reading, however, the daily chart looks a good bit choppier. We see MACD consolidating – fine – but about to enter a leg down. Price itself is in a parallel channel, and it will be interesting to see how deep price will go in this formation – and owing to the weekly chart, it seems unlikely that price will carve down through the present support.
Assuming price holds at support, we could see a bull divergence show up on the next RSI low. The RSI has been choppy here, and the last bull divergence didn’t result in an exit from this channel. We also see a slight case of hidden bearish divergence here, suggesting against the possibility that price will break out of the channel here, at the top.
Finally, moving up for the close-up 4-hour chart, we see no signs of a break out of the top of this channel on low timeframes, either.
Lower price highs are matched by lower RSI highs, with flat RSI lows. The MACD, after crossing over bullish, looks to already be throwing in the towel and curling back down. As for volume, there is no unusual uptick in volume to speak of.
From this we can see that BNB/BTC is likely to bounce off the channel top, and retest support. Breaking the 55 EMA here should spell the beginning of that down leg. As for longer term price prospects, things do look better; but it will take time.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
