Technical analysis: BNB/USDT signals a downturn as bullish momentum weakens

BNB/USDT trading strategy

mb-3
">

• Buy/sell asset: Sell BNB/USDT
• Entry price: $311
• Stop loss: $320
• Leverage: 1x
• Take profit 1: $307
• Take profit 2: $298
• Take profit 3: $289
• Timeframe: 1-2 weeks
• Maximum profit: 8%
• Maximum loss: 3%

BNB/USDT chart and technical analysis

The bullish pressure on the Binance coin is fading away as the bullish trend line has broken and the price is making lower lows. The trend on the hourly time frame has turned bearish and the market structure is also bearish which indicates further decline.

Currently, the price is making a correction after the recent drop and will likely retrace to the $311 resistance level before dropping further. I am considering the $311 resistance level for short entry and my target for this trade is the $289 support level.

The $311 is a major level from where the price will likely continue the bearish trend. There is also a bearish order block and fair value gap around the same price area. Moreover, the double top around the same price is another confirmation of a potential drop.

Binance Coin fundamental analysis

Fundamentally, the price can make some rally and will retrace to the $311 resistance level due to the recent optimism in the crypto market, however, the technical indicators indicate further decline ahead.

Binance coin to Tether trade idea takeaways

• The price of BNB/USDT is likely to drop further after retesting the $311 resistance level.
•  The price is likely to drop to the $289 support level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:2.5.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

The post Technical analysis: BNB/USDT signals a downturn as bullish momentum weakens appeared first on Invezz