BNB, the native cryptocurrency of the BSC network, was undoubtedly one of the winners in the altcoin space where the bull market began. The price rose from about $200 to over $600 in one year, making a profit of more than 200% in the process. However, this run of altcoin outperformance appears to be coming to an end as one analyst predicts that the altcoin will encounter significant resistance that could halt its growth.
BNB is heading towards the resistance
In an analysis shared on the TradingView website, cryptocurrency analyst Trade City Pro stated that the BNB token may soon have to fight off massive resistance. The analyst points out that this is the culmination of the bullish rally that altcoins saw last year and now the bears are taking a stand.
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The analyst notes that Bitcoin’s performance during this period could help pinpoint where the BNB price is headed next. As they explain, BNB risks falling into a subsequent correction and consolidation, making current levels dangerous for investors.
Primarily, cryptocurrency analysts acknowledge the performance of altcoins here on what Bitcoin will do next. Currently the fourth-largest cryptocurrency by market capitalization, BNB reflects Bitcoin’s movements more than smaller altcoins. So Trade City Pro’s analysis of Bitcoin is not far off.
To see if BNB tokens will continue to be sold or held, the analyst puts Bitcoin’s final decision at the $48,000 level. They explain that a dump below $48,000 would be a sell signal. However, if the Bitcoin price remains strong above $48,000, they will continue to hold altcoins.
What happens if a price crash occurs?
Here, if the BNB price crashes, cryptocurrency analysts have prepared an action plan that could help investors take advantage. For example, if Bitcoin crashes below $48,000, the BNB price could fall below $400, at which level analysts believe buying would be a good move. This is what analysts call a “potential re-entry” point.
Then, in “entry after resistance,” the analyst advises investors to buy the altcoin if the price can recover $616 and stay above that. This level is important because our analysis identifies the $616-$660 range as an important resistance area and is critical for BNB price to continue its upward trend.
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Trade City Pro also added that Fibonacci retracement levels could provide a level for re-entry into altcoins. “If a correction occurs, the key Fibonacci levels of the last upward wave, 0.5 and 0.618 (between $394 and $430), could be good entry points. Wait for a reaction or change in momentum at these levels before entering,” they said.
Finally, the analyst notes that BNB hasn’t really followed the broader market recently, which could mean something is coming. Trade City Pro concludes: “It is interesting to note that BNB appears to be relatively unaffected by wider market conditions. “This suggests Binance could be positioned for something unique.”
Charts from Tradingview.com