BNB BOUND FOR STRONG RECOVERY?!
Updated
I've been waiting for a strong pullback on BNB over the past couple of weeks-months, however, it just kept powering on. While a -10% fall is on the moderate side in crypto, let's take a look at where BNB price is finding support and potential landing spots in the coming days...
First off, like every crypto, BNB has a large love-hate community, however, the asset (I feel it is cheap to call crypto's "coins") is powered by the largest operating exchange - that's a great place to start. Anyway, in a more technical sense, there are 3 things that stick out to me in the chart: RSI, Fib levels, and the recent history of these indicators.
1) Looking back to Feb on the 4-hr timeframe, every time BNB reached oversold territory on the RSI, it rallied by 30-50% in the following DAYS! That alone got me looking more into the recent pullback.
2) Past retracements have found support at the 0.5, 0.618, and .786 Fib levels...just like it has over the past couple of days. That's not as intriguing as that is what is expected at these levels.
But when you realize that last night, BNB found support at the 0.786, ventured deep into oversold RSI territory, and the MACD nosedived...it's no surprise that this morning we see a recovery of 7-8% (with the MACD and RSI still in their similar positions).
3) That being said, looking at the past oversold RSI's, Fib levels, and run-ups, BNB has recovered in dramatic fashion on 3 occasions in only about 10 days. So for fun, I added the line where that would be if this were the case in this current scenario, placing BNB at $28 by 5/17-5/18. Again, this would be astounding but the market changes everyday, especially with the recent hack and scandal(s). I am not saying this scenario will play out just like the others, however, these are the signs I was looking for, and it doesn't hurt that BNB has arguably been the strongest asset in this bear market.
This is not investment advice - just something for traders and investors to keep their eyes on.
First off, like every crypto, BNB has a large love-hate community, however, the asset (I feel it is cheap to call crypto's "coins") is powered by the largest operating exchange - that's a great place to start. Anyway, in a more technical sense, there are 3 things that stick out to me in the chart: RSI, Fib levels, and the recent history of these indicators.
1) Looking back to Feb on the 4-hr timeframe, every time BNB reached oversold territory on the RSI, it rallied by 30-50% in the following DAYS! That alone got me looking more into the recent pullback.
2) Past retracements have found support at the 0.5, 0.618, and .786 Fib levels...just like it has over the past couple of days. That's not as intriguing as that is what is expected at these levels.
But when you realize that last night, BNB found support at the 0.786, ventured deep into oversold RSI territory, and the MACD nosedived...it's no surprise that this morning we see a recovery of 7-8% (with the MACD and RSI still in their similar positions).
3) That being said, looking at the past oversold RSI's, Fib levels, and run-ups, BNB has recovered in dramatic fashion on 3 occasions in only about 10 days. So for fun, I added the line where that would be if this were the case in this current scenario, placing BNB at $28 by 5/17-5/18. Again, this would be astounding but the market changes everyday, especially with the recent hack and scandal(s). I am not saying this scenario will play out just like the others, however, these are the signs I was looking for, and it doesn't hurt that BNB has arguably been the strongest asset in this bear market.
This is not investment advice - just something for traders and investors to keep their eyes on.
Trade closed: target reached
I mean basically...
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