Binance Coin Holds on to Significant Support: Is a Breakout Incoming?

Binance Coin Highlights

• The BNB price is trading in a range between 18,000-25,000 satoshis.
• It has created a double bottom.
• The RSI provides a bullish outlook.
• There is minor resistance at 20,500 and 22,000 satoshis.
• There is minor support at 19,100 satoshis.

Well-known technical analyst @LomahCrypto outlined his trade for BNB, stating that he was stopped out near 20,000 satoshis. If the price reclaims this level, he believes the prudent move would be to enter the trade in anticipation of higher prices.

$BNB +9%

Late update, literally forgot about it cause it disappeared overnight.

Had a trailing stop and it hit at ~19900.

Hindsight being 20/20, I should've just closed this completely at 20700 and then re-entered if we flipped that level.

Still learning. Still improving :/

— Loma (@LomahCrypto) January 30, 2020

Trading Range

Since September 2019, the BNB price has been trading inside a range between 18,000 and 25,000 satoshis. Both these areas have been historically significant. Currently, the price has created what resembles a double bottom inside the support area. Once the price reached the support area for the second time, it created a lower wick and quickly moved upwards. In addition, the weekly RSI has generated considerable bullish divergence — a strong reversal sign.

Double Bottom

A closer look at the BNB movement reveals a double bottom created on December 22-January 10, which was combined with a bullish divergence in the daily RSI. The daily RSI successfully completed a failure swing bottom and moved above the 50-line, a strong indicator that the price is in an upward trend. After breaking out, the price validated the 19,100 satoshi area as support. This significance of this support area is strengthened by the presence of the 50-day MA, above which the price has already moved and is likely using as support.

Future Binance Coin Movement

The minor resistance areas are found at 20,5000 and 22,000 satoshis, the latter being supported by the presence of the 200-day MA. If the current support area holds, which seems likely, we could see a movement towards above the first resistance area followed by a validation of this area as support. To conclude, the BNB price has possibly finished its correction inside the 19,100 satoshi support area and will begin moving upward. A price decrease below 19,000 satoshis would invalidate this possibility.