Technical Analysis for BNBUSD for 5th January 2022
Binance Coin (BNB) Scarcity May Prop Bulls, Price Firm above $500
Binance, the exchange behind BNB and the Binance Smart Chain (BSC), is dropping their quarterly and gas fees burns for a more predictable and transparent auto-burning process. The new burning procedure is expected to take out 1.99 million BNB every quarter. Burning shall stop once the total BNB circulation drops below 100 million.
Past Performance of BNB
The BNB price is flat-lining above $500, bound by the high-volume bear bars of December 4 and 13, respectively. BNB bulls have the upper hand. The uptrend is valid if Binance coin bulls rebuff bearish attempts below the primary support line at $500.
Binance Coin Technical Analysis
BNBUSDT prices are within a $65 range, with immediate support and resistance at $500 and $565, respectively. Technically, sellers have the upper hand in the short term, given the series of lower lows below the flexible 20-day moving average. Traders can wait for a clear trend definition before committing. In that case, a close above $565 could revive demand, lifting BNB coin prices to H2 2021 highs of $650. Conversely, deeper losses below $500 may offer entries for trend traders targeting $445 and later $330.
What to Expect of BNB
In the short term, sellers are in a commanding position. BNB prices have support at the 38.2 percent Fibonacci retracement level of the H2 2021 trade range. This means the uptrend is strong, and BNBUSDT prices can rapidly recover. Losses below $500 could destabilize bulls. The resulting panic may force BNB to $445 or worse, September 2021 lows of $330. If buyers flow back, a close above $565 forms the base for a leg up to $650 in a buy trend continuation.
Resistance level to watch: $565
Support level to watch: $500
Disclaimer: Opinions expressed are not investment advice. Do your research.
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