Binance coin price started a downside correction from well above $15.00 against the USDT. BNB price is now approaching a strong buy zone, which is likely to stage another rally.
- Binance coin price is trading below the $15.00 and $14.80 pivot levels against the USDT.
- Bitcoin started a major downside correction and declined below $8,000.
- There is an ascending channel forming with support near $14.00 on the 4-hours chart of the BNB/USDT pair (data source from Binance).
- The price is likely to start another rally unless there is a close below the $13.90 support.
Binance Coin Price Approaching Key Support
Earlier this week, we saw a strong rally in bitcoin, Ethereum, ripple, binance coin and a few other major altcoins. BNB price climbed above the $14.00 and $14.50 resistance levels.
Besides, there was a close above the key $14.00 area and the 100 simple moving average (4-hours). It opened the doors for more gains and the price climbed above the $15.00 level.
A new 2020 high was formed near $15.32 before the price started a downside correction. Similarly, there was a correction wave in bitcoin from well above $8,400 and the price declined below $8,000.
Binance coin price is now trading below the $14.80 pivot level. There was also a break below the 23.6% Fib retracement level of the upward move from the $12.97 low to $15.32 high.
However, the price is now approaching a couple of important supports near $14.25 and $14.00. Additionally, the 50% Fib retracement level of the upward move from the $12.97 low to $15.32 high is near the $14.15 level.
More importantly, there is an ascending channel forming with support near $14.00 on the 4-hours chart of the BNB/USDT pair. Finally, the 100 SMA is near the $13.90 area to act as a strong support.
Therefore, there are high chances of another rally in binance coin price as long as it is above $13.90. On the upside, a clear break above the $14.50 and $14.80 levels could trigger a surge above $15.00.
What If BNB Bulls Fail?
We cannot completely discard the chances of a breakdown below the $14.00 and $13.90 support levels. If BNB price settles below the 100 simple moving average (4-hours), there is a risk of a sharp decline below $13.80 and $13.50.
Looking at the chart, binance coin price is clearly trading near a crucial support area at $14.20 and $14.00, suggesting high possibilities of another increase above $14.50 and $15.00.
4-Hours MACD – The MACD for BNB/USDT is losing momentum in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for BNB/USDT is currently declining below 50.
Major Support Levels – $14.20, $14.00 and $13.90.
Major Resistance Levels – $14.50, $14.80 and $15.00.