Despite the overall positive sentiment within the cryptocurrency market, Binance Coin (BNB) is facing a bearish trend. The first quarter of 2025 saw ETH plummet by nearly 45%, marking its worst start since 2018, and this downtrend has spilled over to BNB, which has seen a notable 16% pullback throughout the year. A new analysis suggests that BNB is approaching a crucial level on its weekly chart, potentially signifying a head and shoulders pattern – historically bearish structure.
This pattern began after BNB faced rejection at $728, leading to a sharp correction that marked the left shoulder. Following this correction, there was a significant rally of 51% which formed the head at $794. The price then dropped sharply by nearly 34.7%, bringing it down to the neckline zone near $540- $570 where it briefly found support.
Now, BNB is showing signs of a rebound. If this pattern continues, we could see a short-term increase towards the $700- $730 level. This would complete the right shoulder and set up for a potential final pullback to the neckline region and a bearish reversal. However, if bulls can convincingly push price beyond the $728 zone, the entire bearish setup might be invalidated and a larger rally could commence.
The current MACD remains flat, indicating indecision and low momentum. The 50-week moving average at around $602 acts as resistance while the 100-week MA near $458 can act as key support if the neckline breaks.
Ultimately, the market awaits a decisive move from bulls or bears to determine the next trajectory of BNB. It’s important to remember that this analysis is for informational purposes only and not financial advice; always conduct your own research before investing in cryptocurrencies.