After a week-long fight near the upper trend line of the growth channel, sellers succeeded in satisfying all buyer demands and starting a correction. After a breakthrough of $30.7, sellers took the initiative in their hands and if they manage to keep that price in the near future, we expect the continuation of the fall. So far, the price falls fairly smoothly and does not cause panic among buyers. But it will last until sellers are 100% sure of the weakness of the buyers. Now on a 4-hour timeframe, we see that buyers are trying to buy BNB, but the price does not increase at all:
Now the fight is running around the middle line of the growth channel, in which the price is traded from December 2018. If buyers cannot fix above $30.7, then the fall will continue to $25. This price is quite significant for this coin. In the price of $25 in June 2018, a high was set, which could only be updated in a year:
At the end of April, buyers again approached this price and could not break it through for the first time, after which the correction began to the middle of May. The third fact is that at this price, the lower trend line of the growth channel passes. Therefore, we think that should be a stop at a price of $25. And then we will analyze how much buyers would want to keep this price zone and whether the sellers remained in power.
The probability of a $25 price test also tells us a weekly candle that has not yet been formed, but suggests that the prospect of a continuation of the fall after discovering the weakness of buyers:
According to the wave analysis, the current fall practically corrected the entire wave of growth by 23.6%. The important level is at a price of $23.5:
If we count how much the current fall has not corrected the whole wave of growth from December, namely wave 5 (from 10 May 2019), then the correction percentage is 38.2%. And at a price of $25, the wave (5) will be corrected to 61.8%:
Thus, we see that using different methods of analysis we obtain an important price zone of $23.5-25, which will be followed by a real fight, and on which will depend whether growth that lasted half a year ended or not. Therefore, in the next analysis, we will try to give a chance to buyers to continue the trend and whether is worth to buy this coin in the range of $23.5-25.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News