Bancor (BNTUSD) Encounters a Setback to Its Bullish Momentum
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Market Analysis – Bancor Falls After It Encounters the $4.400 Resistance.
Bancor encounters a setback to its ambitious rally after failing at the $4.400 resistance level. The market has been having a run of bullish rallies which helped it past several hurdles to this point. The bullish rally began when bulls transitioned from a failure at $3.380 to a very strong market pump on the 20th of July 2021. There was little difficulty in getting over $3.700, but persistence and tenacity got Bancor over it.
Bancor Key Levels
Resistance Levels: $4.800, $4.400, $4.100
Support Levels: $3.700, $3.380, $2.500
BNT also encounters similar difficulty at the $4.100 key level. It took a whole week to finally break down the resistance and move further upwards. Bancor then moves up to the zone of the $4.400 weekly resistance, which has posed a much tougher challenge to the buyers. After just five days, instead of BNTUSD moving up, the otherwise is the result. The market has now been knocked below, along with its bullish momentum.
Bulls are now tasked with first reconquering the $4.100 resistance level before going on to subdue the strong $4.400 weekly resistance if they are to continue their ambitious run. The EFI (Elders Force Index) shows that the market’s bullish momentum took a battering while price was being knocked down from $4.400. The force line has now fallen to the negative side of the EFI chart.
Market Expectations
On the 4-hour Bancor has traded to the underside of the EMA (Exponential Moving Average) of the Envelope indicator and is struggling to get back above it. Price is currently trading around $3.946 and, if anything, it looks like it is in a downtrend. The Elders Force Index indicator still has its force line well plunged into the negative value, which also means that bears have the upper hand at the moment.
If, after a couple of days, the price fails to recover above $4.100, then bears would be well placed to plunge the market down to $3.700, where we can expect further reactions.
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