Binance Coin Price Analysis: BNB briefly spikes below $506, market ready to rally?

TL;DR Breakdown

• Binance Coin price analysis is bullish today.
• BNB/USD dropped below previous support overnight.
• Reaction higher seen this morning.

Binance Coin price analysis is bullish today as we expect more upside to follow after a quick spike below $506 previous lows and a reaction higher over the past hours. Likely BNB/USD is now ready to push higher, with the previous high as the target to reach.

The cryptocurrency market has mostly seen bearish momentum over the last 24 hours. The market leader, Bitcoin, declined by 1.46 percent, while Ethereum saw a small gain of 0.12 percent. Meanwhile, Binance Coin (BNB) has seen a substantial decline of around 2.5 percent.

Binance Coin price movement in the last 24 hours: Binance Coin drops almost 6 percent, quickly reacts higher

BNB/USD traded in a range of $503.22 – $532.10, indicating substantial volatility over the last 24 hours. Trading volume has increased by 50.96 percent, totaling $2.34 billion. Meanwhile, the total market cap trades around $85.63 billion, ranking the coin still in 3rd place.

BNB/USD 4-hour chart: BNB ready to recover?

On the 4-hour chart, we can see the Binance Coin price moving higher again today, likely leading to further recovery.

Binance Coin has shown signs of reversal over the past days. Earlier in the month, a sharp drop from $572 swing high, resulted in a loss of astound 12 percent in a couple of days.

However, strong support at $506 has prevented further downside since. BNB/USD saw a recovery to $534 over the weekend after several retests of downside. 

Since the sharp spike lower seen yesterday could not break any further substantial downside, the Binance Coin price is now ready to push higher again. Therefore, we expect more upside to be seen later this week above the current high as bears are finally exhausted.

Binance Coin Price Analysis: Conclusion 

Binance Coin price analysis is bullish as we expect the spike lower to be a sign of strength as the market was quickly rejected higher. Therefore, BNB/USD is likely now ready to rally once again and look to set another higher local high.

While waiting for Binance Coin to move further, see our articles on crypto tax-loss harvesting, BTC-backed mortgage services, and Pi Wallet.