BNB market analysis 24 July 2019
Throughout the week from the previous analysis, BNB buyers are trying to regain their positions at the price they lost as a result of the fall from 22 June.
With the help of noticeably large volumes of trading, buyers can test the red trend line, which they did not keep on 11 July. It is already the second test of this line, but not as successful as the previous one. The fact is that on 12-13 July, buyers had a real chance to fix above the red trend line. The day candle on 12 July looked confident, something you would not say about the day candle on 22 July:
The 4-hour timeframe clearly shows the difference between these two situations. In the first case, buyers’ initiative is clearly visible, which gradually went to consolidation. And only then there was a change of forces in the market. In the situation on 22 July, we see that immediately after buyers tried to break through the trend line, sellers responded quite sharply and buyers still did not give any answer:
Since, currently sellers control the situation, there is a high probability of a repeat test of the price range of USD 24-25 and attempts to exit the black channel of the price movement.
Therefore, it is important to see exactly how sellers will visit the purple price zone. Decreasing trading volumes during the fall and test of the purple price zone will mean the loss of sellers’ power and the continuation of the price movement in the black channel.
The closing of the last week’s candle showed us that buyers are ready to protect the price range of USD 24-25.
However, the present weekly candle shows that in addition to protecting buyers, they are not ready to continue to grow:
According to the wave analysis, locally the wave of fall is corrected now. At USD 32, buyers corrected the previous wave by 50%:
In order to change the situation on the market, buyers need to keep a price of USD 26.5. In this case, buyers again will have a chance to test a USD 38:
Otherwise, the next serious target of sellers at a price of USD 22.8 with a possible prospect of the fall continuation to USD 16.8.
Whether the critical points of buyers will resist and whether they will have a new chance to update the historical high without lowering the price below USD 24, we will analyze next week on Wednesday!
Charts Courtesy: TradingView