BNB Gets Rejected Before Reaching $30

Share Article
In Brief
  • BNB has completed an evening star pattern.

  • Technical indicators are neutral.

  • There is support at $22.50 and resistance at $29.

  • promo

    Want to know more? Join our Telegram Group and get trading signals, a free trading course and daily communication with crypto fans!

The Trust Project is an international consortium of news organizations building standards of transparency.

The Binance Coin (BNB) price was rejected on Sept. 30 and initiated a drop that is still ongoing. While a short-term bounce is expected, the direction of the longer-term trend is unclear.



Creation of a Lower High

On Sept. 14, the BNB price reached a high of $33.35. However, the price created a doji candlestick and followed that up with a bearish engulfing one, successfully completing an evening star (known as a bearish reversal pattern).

The decline continued until the price reached a low of $22.22 on Sept. 21, validating the $22.50 area as support.

On Sept 30, the price was rejected by the 0.618 Fib level of the entire decline and dropped once more. This successfully created a lower high at a customary level for retracements.

Technical indicators are neutral. The RSI is trading above 50 but is falling, and the Stochastic oscillator seems to have rejected a bullish cross.



BNB Chart by TradingView

Weakness Leads to Drop

Cryptocurrency trader @devchart outlined a BNB chart, stating that that the price has increased by 12% and reportedly flipped a critical resistance level at $26.50. However, since the tweet, the price has been rejected and fallen below the resistance level again.

Source: Twitter

The 6-hour chart shows that the fall was preceded with bearish divergence on both the RSI and the MACD.

 

At the time of writing, the price was trading right at the 0.5 Fib level of the entire rally. To remain valid, BNB would soon need to reach a low and begin moving upwards.

BNB Chart by TradingView

While there is an unconfirmed bullish divergence on the RSI, there are no other signs that would suggest that the price will reverse its bearish trend.

BNB Chart by TradingView

Wave Count

The wave count for BNB indicates that the price has completed an A-B-C correction (shown in orange below) with a low on Sept 21. The rally since then looks impulsive rather than corrective (red), and the price seems to have completed a bullish impulse, currently trading in another A-B-C correction.

Currently, it’s not yet certain whether the increase is a part of a larger wave A or a new bullish impulse.

However, the price should complete its correction near $24, and a decline below this area would reduce the chances of this being a bullish impulse. A decline below the $22.10 low would invalidate the possibility of this being the beginning of a new upward trend.

BNB Chart by TradingView

To conclude, the BNB price should find support near $24 and begin an upward move. The direction of the longer-term trend remains unclear.

For BeInCrypto’s Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

Share Article

Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

Follow Author

Daily signals, Bitcoin analytics and traders chat. Join our Telegram today!

Let’s Go
Daily signals and Bitcoin analytics.