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The BNB price has been rallying all through the week, recovering from a recent 68% dump in the Altcoin price. However, this rally is entering a critical point, with the potential for a price drop increasing every day!
In this BNB analysis, we will be talking about the two bearish patterns currently forming on the BNB chart, the key levels to watch for.
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The $217 Key Support!
The most important key level on the BNB Chart is the $217 support. We can see how that support clearly held the price of BNB preventing further decline during the BNB price crash.
This support also held earlier this year when BNB was forming a bullish pennant. This bullish pattern was followed by a 214% surge in the BNB price, confirming the validity of our $217 support. A break below this support could spell doom for BNB.
Also, if you take a second look at the price chart, you can see a “Head and Shoulder Pattern” forming right now! This pattern is also very bearish and the key level also falls at the $217 support, increasing the pressure for the BNB bulls to defend this support.
However, a step lower in the timeframe we are analyzing provided us yet another bearish pattern on the 4-hour timeframe. We will be talking about this bearish pattern in the section below.
Bearish Pennant Spells Doom
On the 4-hour timeframe, we are seeing a bearish pennant playout on the chart. This pattern is very bearish and points to a move lower for the BNB price in the coming days.
The big question to ask right now is can the BNB bulls fight these multiple bearish patterns and win?
The key level to watch for the bullish pennant to confirm the BNB sell-off as started is the $299 support. There is a 90% chance that a break below this support could see the BNB price crash to the $216 key support or even lower in the coming days!
What Does This Mean For BNB?
This analysis helps us draw a clear line in the sand where we want to see the BNB price continue to trade above, and that line in the sand is the $299 mini-support.
A price close below this support could see the BNB price crashing to the $217 support or lower in the coming days.
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