BNB clear ideal invers head and shoulders
2024-09-24

my analysis on  BNB forming an inverse head and shoulders pattern . Here’s a more detailed breakdown:

1. Inverse Head and Shoulders Formation:
   - The chart clearly depicts a classic inverse head and shoulders pattern, a strong bullish reversal signal. The pattern consists of two lower lows (the shoulders) and one deeper low (the head), indicating a shift from a bearish to a bullish trend.
   
   - Entry Point: As you noted, the price is currently testing the 0.5 Fibonacci retracement level (~562.2). This is a common area for reversals in such patterns, making it a strong entry point for traders looking to ride the bullish momentum.
   -TP1 : The first take-profit target sits at the 0.618 Fibonacci level (~622), which is often a critical resistance level. Traders tend to scale out of positions here to lock in profits, especially in case the resistance holds.
   - **TP2**: The second target aligns with the 0.786 Fibonacci level (~665.8), which is a more ambitious upside goal, indicating further potential gains if the momentum continues.

3. Retest of Support:
   - Before reaching TP1, the price may retest the neckline (currently around 0.5 Fibonacci) to confirm it as support that might be confirmed within few days. If the retest is successful, it would provide additional confidence for traders to hold positions for higher targets.

4. Projected Move:
   - After a potential breakout past TP1, a move towards TP2 is probable if bullish momentum sustains. Finally, TP3 could represent the complete head-and-shoulders breakout target, which is the total height of the pattern added to the neckline, pushing prices beyond the current range.
Please make sure about key take away:
   - Watch for **volume confirmation** during the breakout.
   - Be cautious of **false breakouts**, especially around key levels (0.5 and 0.618), as price could retrace if the line is not touched at least 3 point as It was strong resistance for past few months.
This is a classic bullish setup, and following these levels with proper risk management could be profitable.