Altcoin Analysis: BNB
BNB is my personal major holding, although I have criticized it in the past, it has finally started to rebound. Let's take a look at its technical structure.
Daily Analysis:
On the daily chart, the current price has broken through the central area of four candlesticks, and the breakout pattern is quite strong, indicating an impulsive rise. Although the increase is rapid and crowded, from the trend perspective, the probability of price retracing and entering the central area is greater than continuing to expand.
5-Minute Level Analysis:
Due to the accelerated rise in the short term, we need to adjust the trading rhythm and use shorter time frame charts to capture opportunities. A short-term sell signal has appeared on the 5-minute chart, but this has not caused significant damage to the subsequent trend. If you are willing to engage in short-term trading, you can consider making a short position, but it is relatively difficult. It is recommended to wait for a divergence signal on a higher time frame (like 30 minutes) to reduce positions, which is safer.
Trading Suggestions:
If the current rise can be viewed as a daily level increase, there are two suggested holding methods:
Lazy Version: Wait for the top fractal confirmation on the daily chart. If no top fractal is formed, continue to hold. This strategy can maximize capturing price upward movements, but may lack precise control over retracements after secondary level divergences, suitable for investors with average technical analysis skills.
Technical Version: Use partitioned position management, splitting the position into three parts based on the daily (1D), 30-minute (30F), and 4-hour (4H) references, maintaining positions at each level. This is a standard operation in the Chande theory system, aimed at maximizing profits through a low retracement strategy. If executed correctly, positions gradually increase as prices rise, ultimately completing liquidation at the highest level's selling point.
