Binance Coin Mid-Week Analysis – Resistance Levels in Play – 05/02/20

Binance Coin Price Resistance

It’s been a mixed 1st half of the week for Binance Coin, which saw 2 in the green out of 3.

Rallying from an early Sunday current week low $17.67, Binance Coin struck a Monday current week high $19.14 before hitting reverse.

Steering clear of the major support levels, Binance Coin also fell short of the first major resistance level at $19.27.

Of greater significance, however, was a breakthrough the 23.6% FIB of $18.8 before a 1.83% fall on Tuesday.

The pullback saw Binance Coin fall back through the 23.6% FIB to $17 levels before recovering to $18 levels to limit the downside for the current week.

For the current week, Binance Coin was down by 0.77%, Sunday through to Tuesday.

A 1.01% rally on Sunday provided much-needed support in the early part of the week.

The near-term bearish trend remained intact, however, supported by the late 2019 reversal and December’s swing lo $12.11.

The extended sell-off had seen Binance Coin fall for 5 consecutive weeks before finding support in late December. The reversal had included a 19.3% slide in the final week of November.

At the turn of the year, Binance Coin has enjoyed 5 weeks in the green out of 6, which included a 19.4% rally in the week ending 18th January.

For the bulls, Binance Coin would need to break through the 62% FIB of $30 to form a near-term bullish trend.

At the time of writing, Binance Coin was up by 2.41% to $18.54. A bullish start to the day on Wednesday saw Binance Coin rally from an early morning low $17.76 to the current week high $19.14.

The early rally saw Binance Coin break through the 23.8% FIB of $18.8 before easing back.

Binance Coin continued to leave the major support and resistance levels untested in the early hours of Wednesday.

BNB/USD 05/02/20 Weekly Chart

For the remainder of the week

Binance Coin would need to move back through the 23.6% FIB to $19 levels to support another run at first major resistance level at $19.27.

Support from the broader market would be needed, however, for Binance Coin to break out from the current week high $19.14.

Barring an extended rally going into the weekend, the first major resistance level at $19.27 would likely cap any upside.

In the event of an extended rally, the second major resistance level at $20.30 would come into play.

Failure to move back through to $19 levels could see Binance Coin fall deeper into the red.

A pullback through to sub-$18 levels would bring the first major support level at $16.98 into play.

Barring a crypto meltdown, however, Binance Coin should steer clear of sub-$16 levels.

Looking at the Technical Indicators

Major Support Level: $16.98

Major Resistance Level: $19.27

23.6% FIB Retracement Level: $18.8

38.2% FIB Retracement Level: $22.9

62% FIB Retracement Level: $29.5

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