Binance Coin stands out as the biggest winner among the top 20 cryptocurrencies today, as investors flock to secure their gains in this unofficial ‘stablecoin’ against the current falling BTC market.
While figures on the Coinmarketcap listing look promising, the BNB/BTC trading chart is showing some worrying signs that maybe not everything is as ‘stable’ as it looks.
Looking at the 1D BNB/BTC chart you can see a very strong bearish head and shoulders (H&S) pattern setting up, following the recent bearish episode that broke through BNB’s long-standing diagonal support level.
H&S patterns are characterised by a neckline that acts as a base support for the pattern, a left and right shoulder that typically peaks around the same height, and the head that sits in the middle of the shoulders and represents the strongest uptrend in the pattern.
Using these guidelines, we can see that the neckline for this particular example sits at the 0.5 fib level, with the current price action looking to complete the right shoulder. Candles are already struggling against strong selling pressure as they approach the left shoulders peak price point at 19,000 Sats. The pattern will be confirmed or rejected depending on how the price action performs at this area. If it fails to test this area, the H&S pattern will be confirmed. If it surpa...
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