BNB LTF Analysis – 23.06.2023
- Yesterday, on June 22nd, BNB failed to break the resistance of 21D EMA and the upper boundary of the Ascending Triangle.
- Consequently, it also lost the triangle’s upward sloping trendline. During the Asian session BNB tested the diagonal line resistance.
- I am in no way bearish about BNB, but I think that BNB will go a bit lower before it tries for higher. These are my reasons:
- Bearish Momentum: BNB is below the 21D & 50D EMAs. As long as BNB is below these EMAs the bearish pressure is pushing price down.
- A break below a diagonal support is usually a sign of weakness.
- I don’t advocate for trading correlations, but I don’t ignore them either. BTC is looking top heavy, and I expect it to pull back to the 28K level. IMO, BNB in its current state cannot overcome such headwinds.
- Lastly, Today is Friday, I expect many long traders to cash in on their longs and retire for the weekend. If this happens, the bearish pressure all over the market will increase and BNB will suffer.
- The first sign of a recovery is if BNB reclaims the trendline. If BNB reclaims the trendline and pushes up, the bullish case for BNB will become stronger.
- BNB can reverse. BNB is a strong asset with substantial upside potential. As long as the uptrend in the general crypto market holds, I do not expect BNB to drop below the 220 USD Level. However, if BNB does drop to the 180 USD level, I will go balls deep into BNB spot. IMO, this is the best asset in the Altcoin category.
- 238 USD (low confidence)
- 231 USD (medium confidence)
- 220 USD (high confidence)
