Binance Coin (BNB) Forms a Bearish Reversing Chart Setup at the Resistance, but Selling Seems Weak
Binance coin is reversing lower, but the selling pressure seems weak
Binance coin (BNB) has benefited from the improved sentiment in the cryptocurrency market, gaining more than $130 during the past two weeks. Although, it recorded some major losses during the crypto crash in May, when it tumbled from around $690 to $214, it gave some bullish signs over the past two months, while the rest of the crypto market was quite bearish.
The BNB/USD was making slightly higher lows, while the largest part of the crypto market was making lower lows, because the sellers remained in control until two weeks ago. That was a lifeline for Binance coin buyers, who were having a tough time, as the Binance exchange, which is the parent company of Binance coin, kept getting hammered all over the world.
BNB/USD is sliding down this week, but quite slowly
A number of countries, includingItaly, China and the US, have banned the Binance exchange from operating in their countries, while other states, like the UK, Germany, Japan, Poland, Singapore and Thailand, among others, have issued warnings about Binance. Now Malaysia is banning Binance as well. Malaysia’s Securities Commission announced on Friday that it required Binance to cease operations in the country within 14 business days from July 26. This includes:
- Disabling the Binance website and mobile applications.
- Ceasing all media and marketing activities relating to Binance services in the country.
- Immediate restrictions preventing Malaysian investors from accessing Binance’s Telegram group.
So, the situation is not looking too favourable for the Binance exchange, but the entire crypto market is at war with the establishment, and the cryptocurrencies are doing fine now, after that crash in May. This shows that the public is not allowing itself to be deterred too much from participating in this new market, and this is what drives any market up and down. So, the public adoption of cryptocurrencies, despite the open war from central banks and governments, shows that cryptos are here to stay, and the bullish momentum of the last two weeks confirms just that.
Binance Coin Live Chart
So, the BNB/USD has rallied in the last two weeks, gaining more than $134, but it seems like it is having second thoughts at the previous resistance level just below $350. The price formed an upside-down pin on the daily chart on Sunday – this is a bearish reversing signal – and this week, the price has been retreating lower. But, the decline has been quite slow, suggesting that sellers are not confident, and the selling pressure is not strong.
Right now, the price is trading at the 50 SMA (yellow) on the daily chart, which has worked as both support and resistance before, so this might be a good place to buy. But, we will wait to see if sellers can push down to the 200 SMA (purple), which would be an even better place to buy. You can see whether we decide to buy this digital coin during our forex signals session, although if that happens, it won’t be today, because as I said, we don’t see any strong selling pressure.
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