Quickpost BNBUSDT losing momentum after reaching key target
Updated
Introduction
Out of all the top coins since 2017 to right now BNB had one of the best bull runs. Therefore, if it is setting a bull trap I take that that is pretty scary and a bad indicator for the broader market.
Analysis
I consider hidden bearish divergence to be the bulltrap signal and as I look at the charts it is very visible on the RSI. So that gives us continuation to the downside from the peak to peak. Traditional or classic bearish divergence signals the end of a current uptrend and I see that on the MACD histogram. Also, the MACD is on the verge of closing a MACD-Signal line cross. Very bearish when taken into consideration with the divergences.
Good news is the BNBUSDT chart is acting very technically. There was a symmetrical triangle that formed and when it broke it went right to target before stalling and now potentially reversing. Hopefully we can have the same chart clarity moving forward.
Rough Targets
One target would be an ABC correction at the 1.618 looking for an ABC correction
Which is close to the 1 line on this fib channel.
Out of all the top coins since 2017 to right now BNB had one of the best bull runs. Therefore, if it is setting a bull trap I take that that is pretty scary and a bad indicator for the broader market.
Analysis
I consider hidden bearish divergence to be the bulltrap signal and as I look at the charts it is very visible on the RSI. So that gives us continuation to the downside from the peak to peak. Traditional or classic bearish divergence signals the end of a current uptrend and I see that on the MACD histogram. Also, the MACD is on the verge of closing a MACD-Signal line cross. Very bearish when taken into consideration with the divergences.
Good news is the BNBUSDT chart is acting very technically. There was a symmetrical triangle that formed and when it broke it went right to target before stalling and now potentially reversing. Hopefully we can have the same chart clarity moving forward.
Rough Targets
One target would be an ABC correction at the 1.618 looking for an ABC correction
Which is close to the 1 line on this fib channel.
Note
Apparent Rejection at the triangle resistance on a relief rally. I suspect price will continue to target.One thing I will have to watch out for is a return move to the dotted blue trend line. My hope is for this trend to continue down but if not then I can turn this winning trade into a loser or spend way too much time holding.
Note
It appears that the blue line from the chart above has been confirmed as resistance over the last couple of hours. I am almost at the point where I can set a stoploss with a fair bit of profit. I don't want to do it too soon because I am worried I will be taken out with stop hunting wick before the trend continues down and I think my current stop, even though it would be for a loss, is much safer now.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.