BNB Falls to 2021 and 2022 Swing Lows
BNB is the native token of Binance, the world’s largest cryptocurrency exchange by trading volume. BNB can be used to pay for trading fees, participate in token sales, and access other services on the Binance platform.
BNB Falls to 2021 and 2022 Swing Lows: BNB’s Price Action History Since Mid 2021
BNB reached its all-time high of about $704.6 in early May 2021. Since then, it has experienced a significant correction, dropping to as low as $211 in the same May, which created a support level (lowest horizontal line). After a brief retracement, the price approached the same support level in June 2021.
The above shows that BNB trended upwards and approached the resistance area, nearly reaching its all-time high.
Subsequently, the price approached the support level at the swing low in the months of May, June, and December 2022.
After reaching a swing low in December 2022, BNB began an upward trend on the daily. Price later broke out below the trendline, declined further, and once again reached the support level. It is now trading at around $238.21, which is about 64% lower than its peak price. This shows a potential market structure shift as that same support level carries the lowest low in this daily uptrend.
The price currently ranges between a minor resistance level of $251.9 and the aforementioned support level at the swing low.
Implications
The range formation indicates that selling pressure has lessened, however, we can still deduce that the sellers are still present as the buyers are failing to break out of the major resistance at $269.6 or even the minor resistance in the 4-hour time frame. While there may be possible entries within the range of buying near the support level and selling near the resistance level, we must recognize that it is risky. Trading within a range requires careful consideration of market conditions, as the lack of a clear trend can lead to increased volatility and false breakouts. Traders must exercise caution and employ appropriate risk management strategies to navigate this period effectively.
That aside, observers are watching carefully for a break through the support level and a lower low than that of December 2022, which would be taken as confirmation of a market structure shifts from the daily uptrend to a downtrend, hence giving the sellers enough confidence to return with their former strength and magnitude.
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Dominic Jubemi is primarily into legal practice. However, he has taken interest in building and grooming fundamental skills in FX and Crypto trading, audio engineering and in the nearest future, fiction writing.
