As an analyst with a background in traditional financial markets and a deep interest in the cryptocurrency space, I’ve been closely monitoring the price action of BNB, the native cryptocurrency of the Binance Smart Chain (BSC) network. The altcoin has indeed been one of the standout performers during this bull market, with its price soaring from around $200 to over $600 in just a year.
As an analyst, I’ve observed the impressive run of BNB, the native cryptocurrency of the Binance Smart Chain (BSC) network, during this bull market. Its price has surged from approximately $200 to over $600 within a year, resulting in more than 200% gains. However, I predict that we’re approaching a significant resistance level which could potentially halt BNB’s growth trajectory.
BNB Headed For Mounting Resistance
As a crypto analyst, I’ve observed an intriguing development in the BNB token market. In my recent analysis published on TradingView, I highlighted that this digital asset is approaching significant resistance levels. This resistance has accumulated during the robust bullish rally that BNB experienced over the past year. Presently, bears are emerging and making their presence felt.
An analyst’s observation of Bitcoin‘s price trend during this period may provide insight into the potential future direction of BNB. They caution that BNB could experience a correction and consolidation phase next, which makes its current value a potentially risky investment for buyers.
Primarily, the crypto analyst attributions BNB‘s future performance largely to Bitcoin’s actions. As the fourth-largest cryptocurrency by market cap, BNB tends to follow Bitcoin’s lead more closely than smaller altcoins. Consequently, Trade City Pro’s Bitcoin analysis holds significant relevance for understanding BNB’s potential trajectory.
To determine whether it’s worth holding or selling the BNB token, an analyst looks at the current price level of Bitcoin. Specifically, they consider the $48,000 mark as a key indicator. If Bitcoin drops below this price, it would be a sign to sell the BNB. Conversely, if Bitcoin stays strong above $48,000, the analyst would recommend holding onto the altcoin.
What Happens In The Event Of A Price Crash?
As a crypto investor, if I notice that the BNB price takes a downturn from its current level, my analysis reveals a strategy that could benefit us in this situation. For instance, a drop in Bitcoin’s price below $48,000 might push BNB down to around $400. In such an event, I strongly believe that buying BNB at this price point, which I call the “Potential Re-Entry” level, could prove advantageous for us.
In the context of “Entering After Resistance” for BNB altcoin, the analyst recommends investors to purchase the coin once its price surpasses $616 and maintains an upward trend. This recommendation hinges on the fact that $616-$660 is marked as a notable resistance area in the analysis, making it essential for the BNB price to break through this barrier if it aims to sustain its advancement.
Related Reading: How High Can The XRP Price Go? Crypto Analyst Unveils 6-Month Prediction
As an analyst, I would interpret Trade City Pro’s recommendation as follows: The Fibonacci Retracement Levels, derived from the previous upward wave in the altcoin price between $394 and $430, could potentially serve as valuable entry points during a correction. Keep an eye out for price reactions or momentum shifts at these crucial levels, specifically the 0.5 and 0.618 Fibonacci levels, before making your entry into the market.
In conclusion, it’s worth noting that BNB has displayed minimal response to the wider market trends lately, which could be an indication of upcoming developments from Binance. According to Trade City Pro, “it’s intriguing that BNB shows little impact from broader market fluctuations, possibly hinting at Binance preparing for a distinct move.”
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2024-05-17 02:10