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Binance Coin / USD Technical Analysis: Party Is Winding Down

It's had a good run, but some indicators are starting to become overstretched.

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  • Binance Coin is bullish in the short-term with the pair testing towards important technical highs
  • Caution is warranted as bearish divergence is building on the four-hour time frame
  • Medium-term picture is bullish, although some technical indicators appear overstretched

Binance Coin / USD Short-term price analysis

 

In the short-term, Binance Coin is bullish with the popular coin enjoying strong buying demand since the start of this month. The BNB / USD pair is trading well above all key moving averages, with the 50-period moving average crossing over the 200-period moving average.

Warning signs are starting to emerge that a technical pullback may occur, as the BNB / USD pair is showing bearish MACD divergence on the four-hour time frame.

Aside from the bearish price divergence, the Relative Strength Index and Stochastic indicator have both reached extreme oversold conditions on the mentioned time frame.

 

Pattern Watch

The four-hour time frame highlights the recently triggered bullish inverted head and shoulders pattern, which has already reached its upside projection.

 

 

BNB / USD H4 Chart                                       (Source: TradingView)

 

 

MACD

The MACD indicator is creating bearish divergence, which is signaling a possible near-term correction lower.


Binance Coin / USD Medium-term price analysis

 

Binance Coin is bullish in the medium-term, with the cryptocurrency staging a bullish rally above its 200-day moving average. Given that the BNB / USD pair has traded below its 200-day since August of last year, the recent breakout is a major technical development.

The BNB / USD pair has two immediate targets, firstly, the November 7th 2018 swing-high and the September 2nd 2018 trading high, which is the more bullish of the two potential targets.

 

 

BNB / USD H4 Chart                                       (Source: TradingView)

 

 

Pattern Watch

Traders should watch for the formation of a bullish inverted head and shoulders pattern on the daily time frame, particularly if the September 2nd trading high is reached.

 

MACD Indicator

The MACD indicator on the daily time frame time is bullish and shows no bearish divergence at present.

 

RSI Indicator

The Relative Strength Index is bullish on the daily time frame, although caution is advised as the indicator has approached oversold conditions.


Conclusion

 

Binance Coin is bullish over the medium-term and is one of the few major cryptocurrencies trading back above its 200-day moving average.

A short-term technical correction may occur due to the creation of bearish divergence on the four-hour frame. Traders should also watch for the potential formation of a large inverted head and shoulders pattern on the daily time frame.

 

  • binance-coin
  • Binance Coin
    (BNB)
  • Price
    $11.08
  • Market Cap
    $1,600,353,205.50

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