Short

Trimming some BNB as double top formation becomes likely

Updated

Binance recently purged 1,099,888 BNB, emails were sent out to users on 15 April 2021. The fundamentals of decreasing supply would suggest increasing price (if demand holds) which is indeed observable on the chart; price is retesting ATH as I am writing this. It is worth to watch this closely for BNB bag holders; the formation of a double top and the rejection of the USD 600 is likely. Especially if we acknowledge that BNB had a massive vertical run in the previous weeks without a significant correction. For anyone who jumped in at good levels - even USD 300 plus - it is completely reasonable to trim some profits and reduce risk if BNB shows weakness now.

Note

This played out nicely. I wasted some of the profit made on this one with some overly aggressive trades which was another good lesson why one must be really cautious about looking for longs in a topping market. Also, a good demonstration that with limited experience in the markets (4 yrs here) it is the best to buy stuff cheap when crypto is 'dead', hold them long and sell when everybody and their brothers ask you about what to buy and what miner I suggest to use.

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On more thing. In my opinion it is early to buy back into BNB. Lets BTC find stability first and then wait a little, see where we go. If current support of BNB in the low 300s breaks, mid 250 retest is likely or even lower 200s, nice area to buy back.

KhessonDalef

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