It’s been a mixed start to the week for Binance. Binance managed a 3.3% rise on Monday before hitting reverse. Monday’s gain came off the back of a 35.5% rise from last week.
The Monday rally saw Binance strike an early week high $9.936 before hitting reverse on Tuesday. The reversal saw Binance slide from an early morning high $9.888 to an early in the week low $9.0564 before finding support. Binance ended Tuesday with a 2.3% loss.
Steering well clear of the week’s first major support level at $7.4909, the key through the early part of the week was holding onto $9.00 levels.
In spite of the solid gains since early December’s swing lo $4.1724, the extended bearish trend remains intact.
Moves through the early part of this week saw Binance attempt a breakout from the 38.2% FIB Retracement Level of 9.5269. Selling pressure led to a fall back through the 38.2% FIB. In spite of the pullback, Binance managed to hold well above the 23.6% FIB Retracement Level of $7.4804.
At the time of writing, Binance was down by 2.25% to $9.2154. Binance fell from the start of a day morning high $9.5577 to a morning low $9.1101 before finding support. The early moves saw Bucking the trend from across the broader market
While steering clear of the week’s major support level at $7.4909, the pullback saw Binance call on support at $9.00 levels and the day’s first major support level at $8.9331 in the early hours.
Binance would need to hold onto $9.00 levels to support a mid-week recovery. Tuesday and this morning’s slides have pulled Binance into the red for the current week.
Having bucked the trend from the broader market in recent weeks, a move back through Tuesday’s end of day $9.428 to $9.50 levels would be needed to support a run at the 38.2% FIB Retracement Level of $9.5269.
However, we would expect Binance to face strong resistance at the 38.2% FIB. Binance will likely be pinned back from a run at $10.00 levels. The week’s first major resistance level at $10.3811 will likely be left untested ahead of the weekend.
Should Binance manage breakthrough to $9.50 levels ahead of the weekend, support from the broader market could see Binance take a run at $10.00 levels before any pullback.
Failure to hold onto $9.00 levels could see Binance’s downward move accelerate through the week. A fall through $8.60 levels could bring the week’s first major support level at $7.4909 into play. The 23.6% FIB Retracement Level of $7.4804 may also come into play before any recovery, in the event of a sell-off.
Facing the prospects of a 3rd consecutive day in the red, a 10% slide for the week wouldn’t be completely unreasonable. Following last week’s rally, some of the cream is likely to come off the top.
Major Support Level: $7.4909
Major Resistance Level: $10.3811
Fib 23.6% Retracement Level: $7.4804
Fib 38% Retracement Level: $9.5269
Fib 62% Retracement Level: $12.835