🐳BNB: channel or wedge? Doesn't matter. Wait for the trap!

6 במאי 2022

🚩All the financial markets fell yesterday. 340M of longs were liquidated only on the crypto market. Binance Coin(BNB) is pumping yesterday because of Binance and Musk deal on Twitter. Lots of traders were traped and as we see on the volume indicator someone had a good sellout also🐳

In this idea I will show 2 different alternative scenarios for the price.

🔶Channel. We should note the price movement in the channel, where the 6 test of the lower boundary can happen at $330-340. This scenario is unlikely, but it is worth showing.

🔶Falling Wedge. The price has been in a downtrend for a month and 1.5 years in a global consolidation. After the trap for traders on touching the upper boundary of the channel/wedge, a similar trap can be expected when the lower boundary of the wedge will be broken and false brakout heppen.

✅On a false breakout, watch for:
1. price reaction, draw a local trend line to open a trade on the breakout
2. volumes should grow as shown in the example. Fuel for the UPTREND move will be short traders who will open trades on the breakout
3. for profitable trade Bitcoin should also show strength, because all altcoins, including Ethereum, BNB repeat its movements.

Use risk and money management and do not forget to use different trading tools!

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P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.