BNB/USD has been able to reverse from this weekend’s darkest depths, and this short term test of highs will certainly challenge the opinions of speculators.
BNB/USD is trading near 222.0000 as of this writing. This short term high is testing ratios seen on the 17th of June when Binance Coin came within sight of the 220.0000 level also. However this past Saturday as most speculators know, BNB/USD moved towards a low on nearly 182.5000, as the broad cryptocurrency market experienced a wicked selloff of mammoth proportions. The ability of BNB/USD to climb higher is noteworthy, but the reversal likely doesn’t mean the long term bearish trend is dead.
BNB/USD has been able to produce a solid move higher in the past two days. But skeptical traders who believe more downside momentum is going to be generated may actually look at the recent results and consider selling positions around the current price levels. If BNB/USD is able to trade above the 222.0000 and sustain this price action it would be a positive sign, but Binance Coin likely needs to pass the 225.0000 juncture and show it can sustain this value to encourage additional technical buying speculators.
While the current move upwards may be encouraging to some traders, speculators who have pursued the long term bearish trend in the broad cryptocurrency markets remain strong as a group. The downward trajectory of BNB/USD mirrors the overall price action of its major counterparts and the recent move higher may be looked upon as a ‘suckers rally’.
If BNB/USD were to build momentum from its current price this could certainly be enticing for short term moves targeting the 223.0000 to 225.0000 ratios. However, this move upwards could also trigger selling positions, which believe lower moves will be ignited based on the assumption bearish momentum will show its strength again.
Short term traders should be ready for choppy conditions over the next couple of days. Reversals higher have certainly taken place and some traders may want to grasp for quick hitting buying positions which target nearby resistance as take profits goals. However, until a considerable amount of resistance levels are toppled, sellers may continue to dominate price action as they seek the return of strong declines in the broad cryptocurrency market including BNB/USD.
If BNB/USD is not able to maintain the 2220.0000 level and slips below the 220.0000 mark, sellers may begin to feel that shorting Binance Coin is worthwhile. If BNB/USD begins to show signs of weakness and suddenly cannot maintain its lower support ratios of 220.0000 to 218.0000, further erosion could quickly develop.
Current Resistance: 225.5300
Current Support: 218.1900
High Target: 237.5000
Low Target: 189.1600