When a beginners thinks of trading they usually think of the famous coins like $BTC , $BNB and $ETH for trading without thinking that they have shown the maximum spike, and they are afraid to invest in other coins because they don't have complete research on them and they just avoid risks at the start but i thing here to mention is that risk always comes up with opportunity.
Many of you are always confused to step into trading when BTC , BNB and ETH are already at their high.
Today i will tell you how to analyse the trading setup, what are the important things to focus on while entering in a trade lets analyse $BNB
BNB just failed to break the previous high and dropped to $938. What does this actually mean? Will bears now take place or the market needs liquidity before deciding the next direction. Either you are thinking of investing in a spot or you want future trading?? Keep your eyes on the chart.
First check the overall trend of the coin in previous months like here is the chart of 1 day candlestick showing that BNB has potential and was bullish when the whole market was down it does not lose that much momentum as other coins in crypto so investing in trustworthy coins always gives you edge when whole market bleed. So here the question is the performance is positive so is it time to invest in????
So the answer is NO, this is not enough to invest in any coin.
What should we do now???
Lets check the current trend of the coin in market.
For this check the 4h candlestick chart.
So in 4h its clear that market wants to fly but bears step in and BNB is struggling to break $940 so if we have a more closer look we can see that its all time high is near $1000 and when the coin break previous high it takes time or usually reverse the trend that gives panic attacks to the investors so to avoid such condition dont invest in hurry or without complete analysis.
Its 15min chart clearly shows that the market is nowhere,its consolidation between the support and resistance to in that condition wait for the market to start the new path let it first break upwards or downwards.
So to enter in further trading first let it break consolidation and if you want to invest in spot so your plan should be of 1 year , there are clear chances that BNB will hit the new high this year. If you are not that patient then i will tell you other 2 coins to buy as they have more potential to become 3x to 4x.