Trading continues
Sideways within a precisely defined high time frame, with a resistance level of $800 and a support level of $400. As this range matures, the likelihood of a significant breakout or collapse increases. Until then, traders should prepare for continued oscillation and plan around key levels.
Binance has experienced a period of consolidation for weeks, showing no signs of an immediate breakout. However, the ongoing sideways movement paves the way for greater volatility expansion in the near future once resistance or support levels are breached.
Key technical points
Upper range level: $800 resistance level with confirmed divergence and rejection
Lower range level: $400 support level, aligning with the 200 moving average and 0.618 Fibonacci retracement
The rotational structure: the price action has adhered to the boundaries of the range, resulting in a clear oscillation pattern.
Chart (1 week),
The $800 area forms a strong resistance level, as the price has failed to close convincingly above it. A clear divergence from this level has already occurred, confirming a rejection and a return to the mean range. This resistance aligns with the peak of the value area and sits directly above the 0.618 Fibonacci retracement level, reinforcing its technical significance.
If the price continues to reject around this high resistance level on the time frame, the likelihood of a full-range rotation back to the $400 support level increases. This support is a key technical area, coinciding with the 200-day moving average and another 0.618 Fibonacci level, as it also holds unexploited liquidity accumulated over the past few months. Testing this area could provide a broad influx of downward liquidity, potentially paving the way for a stronger upward reaction. The price remains stable within a rotating trading range, with no breakout occurring yet. For long-term investors and swing traders, the optimal buying opportunity is likely near the $400 level, should the price revisit this level with confirmation. Until then, entering medium-term positions carries unnecessary risks.
What to expect in the upcoming price action?
Unless the price breaches the $800 level or loses the $400 support level, the price is expected to continue trading within the range. Traders should focus on the range extremes to determine their positions, with the $400 level representing the ideal accumulation area and the $800 level serving as a breakout catalyst.
Until a clear shift in structure appears, range-bound trading strategies remain favorable.
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