Despite the BTC weakness over the last 3 trading weeks, the BNB market is preparing for something very important. Since our last article, which we published on 19 April, the BNB price has updated its all-time high.
This event did not happen on the first try. On 20-21 April, buyers began an active attack of the range of $585-600. Looking at the daily candle closing on 20 April, the probability that sellers would keep this range was rather low. Though, all that buyers could do after such an impulsive start was to fix a false breakout of this liquidity zone:
Sellers were unable to take their chance to initiate a correction
However, this false breakout did not provoke sellers to a powerful counterattack at all. A local attempt by sellers to reduce the price was met by limit and market orders of buyers. This is evidenced by the closing of several consecutive daily candles with pins down.
The breakdown of the critical range of $585-600 was on 29 April. If we analyze the volumes by which buyers managed to break this range, we have two versions of the market situation. The first version is a total exhaustion of sellers during the two previous attempts to break this liquidity zone. For comparison, pay attention to the volumes with which buyers failed to break the liquidity zone of $585-600 on 12 April. Confirmation of this version should be a slow and weak rollback of the BNBUSDT price to the critical range and the beginning of a new growth impulse with the first target of $730-750. Given the low BTC impact on the cryptocurrency market in general, this scenario is quite likely.
Alternative scenario in the BNB market – the fall to $480-500
Thus, the second version is that the breakout of the historical range upward was carried out by the last forces. And on the weekend the BNB market may collapse powerfully with the first target of $500:
Of course, this scenario may shock investors a little. But it should be understood that a large number of buyers will start closing their positions abruptly below $585. In this case, it is worth buying BNB in the range of $480-500. From this range, we will expect the minimum bounce of the BNB price by 20%. After retesting of $585-600, we will look at how good the chances for buyers are to continue to grow and update the historical high.
