Binance Coin (BNB), the native token of the world’s largest cryptocurrency exchange, has been grappling with bearish pressure recently. A notable bearish divergence spotted a few days ago has seen BNB’s price retreat by 2%, continuing to struggle against the psychological $600 resistance that emerged in late August.
Navigating The Range – Bulls And Bears In Confrontation
The weekly charts reveal a crucial battleground for BNB, with the token oscillating between two significant levels: $454.8 and $605.6. This range has defined BNB’s market structure over the past eight weeks, establishing a clear pattern of resistance and support. The recent drop below $450 in August highlighted a shift in market sentiment, leaning towards seller dominance, as evidenced by a CMF (Chaikin Money Flow) falling below +0.05 on the daily chart.
Despite the bearish tilt, there’s a glimmer of hope for BNB holders. The On-Balance Volume (OBV) has shown a slight upward trajectory over the past month, hinting at potential bullish movements. However, the $600 resistance and $450 support levels remain critical, with $450 appearing to be the weaker of the two in the current market environment.
Short Squeeze – A Potential Catalyst for Price Movement?
The landscape of Binance Coin’s price action is further complicated by a high-density liquidity pool forming at $615. This zone indicates that while BNB prices may be drawn towards this level, they could face resistance soon after breaching $600. The lower timeframe charts reveal an imbalance in liquidation levels, with short liquidations outpacing long liquidations—a situation ripe for a potential short squeeze.
AMBCrypto’s analysis of the 1-hour price chart uncovers a smaller range formation between $498 and $513, with $506 acting as a recent resistance point. This suggests a potential bounce back to levels around $507 and $512 before any significant moves.
Market Outlook – A Range-Bound Saga
As Binance Coin continues to navigate its two-month range formation, traders should keep a close eye on these key levels. The ongoing battle between bullish and bearish forces suggests that BNB may remain range-bound for the foreseeable future. For now, the psychological $600 level and the support at $450 will likely dictate the token’s short-term direction, while a short squeeze could offer a temporary boost in price.
In summary, BNB’s current market dynamics point to a period of consolidation and potential volatility. Investors should stay alert to changes in trading volumes and liquidation patterns, as these could offer insights into the next major price movement for Binance Coin.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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