Rumours emerged on or around May 31st 2018 of a billion dollar Binance fund and this was a likely driver for a spike in price and volume on $BNB on May 31st. Rumors were confirmed on June 1st.
I don’t want to chase $BNB on what could be just a temporary one-event bounce. So I made a novice attempt to find a good entry point into BNB.
When looking for a good entry point using TA, several common indicators should be considered. Such indicators include–but are certainly not limited to–moving averages, exponential moving averages (which gives more weight to the bars that are closer to where you are), Bollinger Bands, MACD, RSI and volume.
When reviewing the Daily and Weekly charts of BNB/BTC, here were a few things that caught my novice eye:
We should expect BNB to dip from its current price on June 1 2018 for at least a couple reasons:
- We seem to lack sufficient volume to break the upper Bollinger Band (.0019 BTC).
- The RSI seems to be approaching over bought range (70) and we are not at all-time highs.
Using the 20 & 50-day MA along with the 10-week MA, I believe there are some strong levels of support we can target as entry points:
- The 20-day MA has acted as support since 5/17/18 and would give us a target of .0017 BTC (about $12.75 USD).
- The 50-day MA has acted as support since 5/18/18 and would give us a target of .0016 BTC (about $12.00 USD).
5. The 10-week MA has served as support since 3-19-18 and confirm a strong level of support at .0016 BTC in confluence with the 50-day MA
HYPOTHESIS: I would set buy targets as follows
1 – Layer in a small entry point just above the 20-day moving average at .0017 BTC.
2- Set my main entry point just above the 50-day & 10-week MA at .0016 BTC.
3- Should the price break the above two support zones, I would target a VERY strong level of support at the confluence of the bottom Bollinger Band and 100-day MA at .0014 BTC.