Binance Coin (BNB) is back, after a week of surging as the altcoin market heats up. It is running into a hugely important resistance level on its BTC pairing; but with overbought conditions screaming, it seems unlikely to break this level on the current run-up.
Starting with the weekly BNB/Bitcoin chart, we must note the prominent resistance that BNB is banging against, at about ?0.0025. We can see that BNB has already put in a higher high on this chart, and even a rejection here will give it a good chance for a higher low; and thus a setup for another attempt at this level (that is, if it holds now).
Coming in closer to the same chart, we see that BNB has broken through a major inflection level on the RSI; and that the histogram last week put in a major acceleration to the upside.
Turning to the 3-day BNB/Bitcoin chart, we see the exchange token getting overbought, rocketing to the top of the 3-day range and already far overbought on the daily. The present resistance has been clearly flipped to support, though, making a nice soft range for a potential retracement.
We have a clearly exceptional little bull run, here; but buying into such an overbought asset is simply dangerous. Of course, BNB could continue higher from here, but it’s more likely that the exchange token consolidates first.
Finally, on a daily BNB/Dollar chart, we see that the likely scenario of a retracement would revolve around the $22 inflection zone. This line falls in the middle of a retracement scale drawn from the recent market structure, thus making it a good candidate for a bounce or consolidation-magnet.
And again, we see that the RSI is screaming with its hair on fire, at a level of 85% – a level rarely enough seen on the daily to advise caution.
In the long term, BNB has likely just started a general bull market. However, on LTF and even MTF charts, it’s probably not the time to be buying in: wait for a correction if you’re FOMOing, and maybe think about profit-taking if you’re already in.
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