Binance Coin price analysis 18 Nov: A new high may take time?
Binance Coin has pulled back in an uptrend
Binance processes about $76bn worth of trading in bitcoin and ether each day, which is more than its four largest competitors put together, said the Wall Street Journal citing data from CryptoCompare. Binance has been the largest crypto exchange in terms of monthly spot trading volume for 15 consecutive months.
However, Binance founder and chief executive Changpeng Zhao, said the exchange is looking to grow at a moderate pace because it wants “the other exchanges to be a little bigger” so that the load can be split among users.
The Binance Smart Chain team tweeted on 17 November that the blockchain had completed 14.7 million transactions in one day on 16 November, which is a record. For comparison, on the same day, the Ethereum network managed 1.3 million transactions while the Bitcoin network completed 301,103 transactions.
According to a few company insiders, if Binance decides to go public, it could command a market capitalisation of more than $300bn.
Will Binance Coin go up and hit a new all-time high or will correction deepen? Let’s see what charts project. Read our BNB price analysis to find out.
Binance Coin price technical analysis: weekly chart
BNB’s price is correcting in a strong uptrend. The bulls tried to push the price above the overhead resistance for the past few days but the bears had other plans. A strong defence of the overhead resistance may have prompted profit-booking from short-term traders, which started a correction.
The critical support to watch on the downside is $505. If the price rebounds off this support, it will suggest that traders continue to view dips as a buying opportunity. The buyers will then make one more attempt to push the BNB/USD pair above the all-time high.
If they succeed, the pair could resume its uptrend and start its journey toward the next target objective at $814.50.
Contrary to this assumption, if the price breaks and sustains below $505, the selling could accelerate. The pair could then enter a deeper corrective phase.
The Binance Coin price analysis shows that bears are attempting to form a double top in the $653.50 to $676.20 resistance zone.
Binance Coin price technical analysis: daily chart
BNB’s price has been trading inside an ascending channel pattern for the past few days. The bears have pulled the price below the centerline of the channel and the pair could now drop to the trendline.
A strong rebound off the trendline will indicate that the up-move remains intact. The bulls will then try to push the price above the overhead zone.
Contrary to this assumption, if the price breaks below the channel, it will indicate a possible change in trend. There is a minor support at the 38.2% Fibonacci retracement level of $531.10 but if this level cracks, the pullback could deepen to the 50% retracement level of $493.30.
If the price turns up from this support zone, the bulls will again try to resume the uptrend but if the pair plummets below $493.30, the correction could deepen to the 61.8% Fibonacci retracement level at $455.40. The deeper the fall, the longer it may take for the pair to break out to a new all-time high.
Binance Coin buy or sell at current levels?
Binance Coin price analysis shows the start of a pullback, which may find support at the trendline of the channel. If that happens, the bulls will again try to push the pair to a new all-time high and resume the uptrend. Conversely, a break below the channel could start a deeper correction to the 50% retracement level at $493.30.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.