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  • BNB experiences 7 consecutive daily candle drop as it loses 6% in last 24 hours.
  • Death cross forming on BNB, $15 incoming?
  • US launches 75% discount on BNB fees can it push a reversal?

Binance cryptocurrency exchange’s native token, Binance coin (BNB), is in a freefall as price witnessed a seven day consecutive drop in returns. Dropping 6.58% in the past 24 hours, the BNB/USD perma bulls are starting to get worried as daily candle lingers below wedge support at $17.2939 USD, as at time of writing.

However, with the oscillators deep into the oversold region, a bullish reversal looks set to follow the short term downtrend in a few days as bears lose strength in the market.

BNB/USD’s Nine Day Capitulation Streak Risks Test at $14.30 USD

While the title may be misleading in absolute terms, the green candle recorded on Nov. 17 is no cause for celebration for the bulls as the eight day capitulation streak (bar Nov.17) spells doom for the exchange token. Having failed to break resistance at $23.00 during the short run bullish momentum in October due to China’s positive remarks on blockchain, BNB has witnessed a rather torrid period in the past week, turning resistance to support levels.

bnbusd

With bears strongly having a hold of the market, technical indicators signal a possible downward trend in price towards the support levels at $15 USD.

Death Cross Forms as Price Breaks Wedge Support

Looking at the daily charts, BNB/USD is at the edge as the price dances below the wedge support risking a push towards major support at $14.30 USD. If the current candle closes below the support level, it would offer an excellent opportunity to short the pair. The bearish sentiments are further strengthened by the formation of the death cross on BTC’s price on Nov 19, which has been followed by the widening of SMA 50 from the SMA 200 showing cloudy signs for the pair.

bnbusd

Bollinger bands (BB) also predict bearish signals on BNB/USD as price cuts below the lower band, which means a downtrend is in the offing, With the bands expanding from the squeeze, the price looks set to test the lower support levels, but could the coin’s bulls and recent developments around Binance force a reversal?

Clutching at Straws: Can Lower Trading Fees Drive BNB Adoption?

While BNB may have a number of utilities, lower trading fees on Binance remains the core function to users. Today, following BNB’s 6% drop against the green buck, Binance.US launched a promotion to traders using BNB to pay their trading fees. Discounts up to 75% in trading fees will be offered to users opting for BNB trading fees in a bid to drive up adoption of the coin.

Can the discounts and #BUIDL spirit across the community push the coin back to its all-time highs recorded in June at $42 USD? Or at least end the bearish cycle experienced in the past week?

Images from TradingView

Summary

Binance coin (BNB) experiences 6% drop in 24 hours as $14.30 USD lingers

Article Name

Binance coin (BNB) experiences 6% drop in 24 hours as $14.30 USD lingers

Description

• BNB experiences 7 consecutive daily candle drop as it loses 6% in last 24 hours.
• Death cross forming on BNB, $15 incoming?
• Binance.US launches 75% discount on BNB fees can it push a reversal?

Author

Lujan Odera

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CoinGape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Lujan Odera , 2019-11-21 14:48:34 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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