Binance Coin Analysis – Bears in Control – 02/01/18

It’s been a bad start to the year for Binance Coin, which bucked the broader market trend on Tuesday. A hold onto $6.00 levels mid-week will be key to avoid a sell-off going into the weekend.
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Binance Coin Price Support

After a relatively flat week last week, with Binance Coin ending the week with just a 0.22% loss, Monday through Sunday, it’s been a mixed start to the week. An end of 2018 2.61% gain reversed at the start of the year, with Binance Coin falling by 1.13% on Tuesday to $6.2566, the start of the year sell-off bucking the trend from across the broader market.

Going into the middle of the week, Binance Coin has managed to steer clear of the week’s first major support level at $5.3833, with an early week low $5.8337 struck on Monday.

A Monday morning rally saw Binance Coin strike a start of a week high $6.6414, coming up short of the week’s first major resistance level at $6.8707 before hitting reverse through Tuesday, key through the early part of the week being a hold onto $6.00 levels by the day’s end.

In spite of a 30.75% Gain made in the week ending 24th December, the extended bearish trend, formed at mid-July’s swing hi $18.1894, remained intact following a 7th December new swing lo $4.1724, with Binance Coin continuing to fall short of the 23.6% FIB Retracement Level of $7.4804.

At the time of writing, Binance Coin was down 0.41% to $6.2307, with Binance Coin falling from a high 6.2816 to morning low $6.2112, a pullback from Tuesday’s late in the day high continuing into the early hours of the morning.

For the week ahead, holding onto $6.00 levels through the middle part of the week will be key to support a move back through the start of a week high $6.6414 to bring the week’s first major resistance level at $6.8707 and $7.00 levels into play, with Binance Coin needing to make a move back through to $6.64 levels ahead of the weekend to provide support through to the end of the week.

Failure to hold onto $6.00 levels through the middle part of the week could see Binance Coin cough up the current week’s gains, with a pullback through the start of the week low $5.8337 bringing the week’s first major support level at $5.3833 and last week’s low $5.3078 into play before any recovery, Binance Coin unlikely to fall to sub-$5.00 levels to test the week’s second major support level at $4.6019 in the event of an extended reversal.

Looking at the Technical Indicators

  • Major Support Level: $5.3833
  • Major Resistance Level: $6.8707
  • Fib 23.6% Retracement Level: $7.4804
  • Fib 38% Retracement Level: $9.5269
  • Fib 62% Retracement Level: $12.8349

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