After of period of correction for Binance Coin (BNB), what we could consider the leading exchange token, there are some signs that the BNB/BTC chart could be looking up.
We start on the daily chart. The first thing to note is the still-diminishing volume profile, with only lower highs visible on the spikes. BNB is still in a consolidation/accumulation phase based on this observation.
Our parallel channel from the previous BNB analysis proved to be the correct top for the most recent up cycle. BNB was contained precisely at the 33-day exponential moving average (EMA), which is clearly an important average for the exchange crypto. We should remember this for an eventual reversal.
Looking at the RSI, we note two things: there is a lack of a hidden bearish divergence on this important chart, suggesting that the current downtrend may not continue; and second, a bullish divergence is visible on the lows suggesting a possible reversal. Simply put, the RSI is signaling a trend change from down to up on the long(-ish) term timeframe.
On the MACD/histogram indicator, below, we see that the histogram is coiling down into its own apex, although it seems to be breaking that trend at present. The MACD has been trending up on its cycles toward the centerline, although here to we seem to have a trend break. Overall, if BNB can recover soon on this indicator, the general picture is of an end to the downtrend and confluent with the RSI picture.
And if we take a look at a more granular MACD/histogram, the 8-hour, we can see that the same trendlines drawn here are still within limits. The histogram is having plenty of trouble preserving an up-arc; but it’s also not arcing down at all, either, looking flat overall.
Finally, just as a matter of review, we note the weekly chart which explains the current band of blue support. As we have seen, this important support looks like to hold BNB/BTC in the long term, and is the perfect inflection point for a long term reversal. Previous support becomes resistance.
Things look pretty decent overall. A higher low, or even a double bottom with strong indicators would get us thinking that a bottom is in here. This support zone would be the perfect place to do it.
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