Binance Coin Price Analysis: BNB Swings Toward $630 Despite Molding Crucial Bearish Pattern

Last Updated July 23rd 2021
2 Min Read
  • Binance Coin's recovery toward $630 catches momentum as bulls close the gap to $600.
  • Closing the day above $600 may also lead to an increase in bullish pressure.
  • The potential double top pattern could culminate in losses as overhead pressure mounts.
  • Binance Coin recently embraced support at $426 following the weekend session declines across the cryptocurrency market. A rebound occurred with bulls pushing above $500. This price action triggered massive buy orders leading to another liftoff toward $600. If the day ends above $600, traders will shift attention not only to $630 but toward $700.

    Binance Coin Approaches a Double-Top Pattern

    Binance Coin trades at $598 at the time of writing. The technical scope on the four-hour chart appears bullish and may soon send BNB above $600. Investors look forward to a confirmed break above $600 to increase their stakes as speculation mounts for gains above $630 and $700, respectively.

    Short-term technical levels shine a light on the bullish narrative. The Moving Average Convergence Divergence (MACD) indicator has lifted into the positive region. Besides, the MACD line (blue) expands the divergence from the signal line, which is a powerful bullish signal. If the technical picture remains unchanged, the least resistance path will be upward in the short term.

    The same bullish outlook has been reinforced by the Relative Strength Index (RSI) on the four-hour chart. The trend strength indicator crosses into the positive region, further cementing the bullish outlook.

    BNB/USD Four-Hour Chart

    Binance Coin 4-Hour Chart

    Looking at the Other Side of the Fence

    The same four-hour chart illustrates a possible double-top pattern. This is a highly bearish formation that comes into play when the price tests a resistance twice separated by a tough and fails to overcome. A significant reversal occurs due to the seller congestion at this level. Similarly, overhead pressure tends to mount due to traders preparing to exit their positions at this level for profit.

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