$BNB prints Adam & Eve type of DOUBLE TOP - bearish reversal
2025-02-06
Category: None

CRYPTOCAP:BTC  won the poll and joins my stable… and immediately starts looking awful short-term, and pretty much in danger when it comes to the longer period perspective. As in, this bull market.

First of all, bearish Rising Wedge since December 2023, which is not a strong way to climb from the bear market lows ($200s). Currently, the lower trendline of this big, rising range is $535, in confluence with key horizontal support, which makes it a must-hold—otherwise, Target is below the bear market lows.

Hard to believe right now, so let’s just say that the 200 MA is looking fine, at mid-$400s and rising—that’s just about the only thing that’s looking bullish.

Recently though,  CRYPTOCAP:BNB  had a nasty type of Double Top formation called Adam & Eve, which tends to signal a reversal of an uptrend, and the neckline was broken, followed by an 18% flash crash.

The subsequent recovery was only 13% to the upside, one of the weakest amongst the top 15 coins. That is a red flag to me. A big one.

Before I consider any long positions or even buying this on spot, I want to see a few things first:

Break back above the Fair Value Gap that’s been turned into the nearest resistance ($575 - $588).

Regain neutral momentum (RSI > minimum 45) by crossing above that nasty, confluenced resistance level made up of the Golden Pocket ($621 - $627) and the key horizontal s/r level of $615 - $617. Such a move would also invalidate the Adam & Eve pattern and give us hope that the bull market should continue for BNB.

And one more obstacle before the current bearish market structure shifts—the falling trendline, which will likely be another strong resistance to push through, due to likely confluence with the 50 MA and Fib 0.5 Retracement Level.

Phew, I already feel tired analyzing this one. So much to do for poor Binance Coin.

So, definitely no long entries here. If anything, I can see some potential shorts, but that’s only if Ethereum continues lower, which we all hope it won’t.

On my watchlist now, will update when any progress is made in either direction. Good luck 👽💙

PS. I publish my stuff regularly on Binance SQUARE, more images are allowed there, and no cap on a number of posts/updates, unlike here. With this post, I have included the Liquidation Heatmap; Check it out:

app.binance.com/uni-qr/cpro/Square-Creator-52b223424?l=en&r=81770287&uc=app_square_share_link&us=copylink
