BINANCE (BNBUSD) Price: Would Buyers Defend Support Level at $21?

BNBUSD Price Analysis – August 08

In case the sellers were able to push the price below the demand level of $21 and the daily candlestick close below the level, then, the price may decline further to test $20 and $18 demand level. Inability to break down the demand level of $21, the bullish trend may continue to target the resistance levels at $22, $23 and $24.

BNB/USD Market

Key levels:

Supply levels: $22, $23, $24
Demand levels: $21, $20, $18

BNBUSD Long-term trend: Bullish

BNBUSD is bullish on the long-term outlook. The coin broke out of the consolidation zone on July 23. The bulls acquired more momentum and pushed up the coin to reach a high of $23 on August 05. The resistance at the level prevented further increase in price and the price dropped to the $21 support level. The Bears are yet to penetrate the just mentioned level before the market closed on August 07. The bearish momentum opened the market today with the possibility of decreasing further provided the support level at $21 does not hold.

The 21 periods EMA is below the 9 periods EMA and the coin is trading closely touching the two EMAs at the demand level of $21 which connotes that the Buyers’ pressure is gradually reducing and sellers may take over the market soon. The Relative Strength Index period 14 is at 70 levels with the signal lines pointing down to indicate a sell signal. In case the sellers were able to push the price below the demand level of $21 and the daily candlestick close below the level, then, the price may decline further to test $20 and $18 demand level. Inability to break down the demand level of $21, the bullish trend may continue to target the resistance levels at $22, $23 and $24.

BNBUSD medium-term Trend: Bullish

The price action of BNBUSD has formed an ascending channel in the 4-hour chart. The price is currently touching the lower trend line of the channel. The 9 periods are crossing the 21 periods EMA downside and it is trading below the two EMAs which connotes an increase in the bears’ momentum.

The RSI indicator period 14 is at 40 levels and the signal lines bending up to indicate a buy signal. Suggested trade setup; Buy Stop order at $23.00, Take profit at $26.00 and Stop loss at $20.00.