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Binance Coin bulls encountered resistance at $282, will a rejection follow?



Binance Coin sees some selling pressure around $280, can bulls break through?
Source: Pixabay

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion. 

  • The lower timeframe market structure of Binance Coin was strongly bullish.
  • The coin saw a minor pullback from $280, and the price reaction over the next few hours could decide BNB’s next move.

Bitcoin [BTC] climbed higher for the third day in a row on 10 January to reach $17.5k. This was close to the resistance at $17.6k, where a reversal was expected. A move above the $17.6k-$17.7k region would invalidate this bearish idea.

How many BNBs can you get for $1?

Binance Coin [BNB] also traded at a significant resistance zone. As per an 11 January article, traders can wait for a move below $270 before looking to enter short positions. The market remained indecisive at a key resistance area and patience could be rewarded.

The bearish order block on the four-hour timeframe has held out so far

Binance Coin sees some selling pressure around $280, can bulls break through?

Source: BNB/USDT on TradingView

The lower timeframe market structure was strongly bullish, but the drop beneath $276.8 saw its character change. The bias remained bullish, but the RSI was at 50.02 to signal momentum could flip downward. Moreover, the CMF was at -0.07, which indicated significant capital flow out of the market in recent hours.

Yet, the A/D indicator has formed higher lows over the past week. This showed genuine demand behind the rally from $240. To the north, the $280, $300 and $315 levels are critical resistance levels.

Are your holdings flashing green? Check the BNB Profit Calculator

A move above $280 could be a hunt for liquidity. Hence, traders can wait for a session close above $284.4 and a retest of the $276-$280 area to assess a buying opportunity. On the other hand, a session close below $270 could lead to a quick descent. In that scenario, a retest of the $270-$275 area could be sold.

The Open Interest has been in decline despite the advancing CVD

Binance Coin sees some selling pressure around $280, can bulls break through?

Source: Coinalyze

Like the A/D indicator, the spot CVD for Binance Coin has also been on the rise in recent days. It, too, showed steady buying pressure behind the recent rally. But the Open Interest metric has been falling since the last week of December. While it was interspersed with upward moves, the trend has been downward.

Especially in recent days, despite the strong gains, BNB’s OI has fallen. In addition to showing that a local top could be around the corner, it was evidence of bearish sentiment in the markets. Coinalyze data that showed $1.8 million worth of short positions on Binance Coin had liquidated as of 9 January.

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Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.