BNBUSDT in strong distribution formation
2023-07-31

BNBUSDT is currently exhibiting a descending triangle formation on the chart, characterized by a horizontal support line and a downward-sloping resistance line. Within this descending triangle, there appears to be a bear flag pattern forming, which suggests a continuation of the prior downtrend after a brief consolidation period.

The bear flag's target is projected by measuring the height of the flagpole (the distance between the highest high and lowest low of the flagpole) and projecting it downward from the breakout point.
The estimated target zone for the bear flag pattern lies between the 154 to 184 USDT range.

We should closely monitor the immediate resistance level, which coincides with the downward-sloping resistance line of the descending triangle. If the price fails to convincingly break above this resistance level and instead shows signs of rejection, it could indicate a potential shorting opportunity, especially when combined with the bearish continuation signal from the bear flag pattern.

The shorting strategy would entail entering a position with a stop-loss above the recent swing high and targeting the projected bear flag's downside target zone (154 to 184 USDT range).