Binance Coin: Traders looking to short BNB should read this
- BNB may decrease to $196 as an analyst opined that it may no longer trend upwards.
- Short positions outweighed longs as technical indicators suggest increasing downward momentum.
For most of the year, Binance Coin [BNB] has had to face a long deal of persecution from regulators and FUD from several market players. Due to these unfortunate events, BNB’s 90-day performance ended in a 27.38% decline.
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At some point, the coin was on the verge of dropping below $200. However, the widespread market recovery this week made sure the BNB stayed afloat, and at press time, the coin’s value was $223.24.
Prepare to sell?
Despite the stability, a number of analysts are still bearish on BNB. For instance, Bluntz, a pseudonymous analyst on Twitter, suggested that BNB should be a priority for traders looking to short a cryptocurrency.
bnb still top of priority list for shorts, savage sfp on bnb/btc yesterday and usd pair simply looks like an abc up still.
— Bluntz (@Bluntz_Capital) August 30, 2023
This was not the first time Bluntz was being critical of BNB, which he had severally called “horrendous.” In 2022, the analyst advised market participants to avoid BNB, noting that its uptrend has ended.
And from the chart he recently shared, BNB may dip to $196 in the short term. Well, Coinglass’ data showed that the 4-hour long/short ratio was 0.92. The long/short ratio represents the amount of crypto available for short-selling versus the amount borrowed and sold.
Values over 1 suggest positive investor expectations, while values below 1 indicate negative expectations from players. Therefore, the long/short ratio of BNB means that there were more open short positions than longs.
Amid the sentiment around BNB, Binance CEO Changpeng Zhao (CZ) indirectly posted on X, highlighting how the market should be bullish on Binance and BNB. In doing this, he shared a BNB/USDT chart showing a sharp green candle for the exchange coin.
There are people who needs to wear a device on their wrist all night long and then an app to tell them if they should feel good or not.
It’s so unnecessary.
— CZ ? Binance (@cz_binance) August 29, 2023
A battle between green and red
But what do the technical indicators suggest? According to the BNB/USD four-hour chart, the coin’s volatility had reached extremely high levels. Previously, BNB tapped $227. But since the upper band of the BB touched this value, it was deemed overbought.
Therefore, this laid the ground for a retracement before support held at $223.50. As per the Moving Average Convergence Divergence (MACD), it was -0.2. Negative values of the MACD indicate the 12-day EMA is below the 26-day EMA.
Read Binance Coin’s [BNB] Price Prediction 2023-2024
This depicts increasing downward momentum. However, the blue dynamic line and the orange dynamic line had crossed the zero-mid point. Besides both lines were almost at the same spot, meaning buying and selling momentum was almost at par.
So, it is likely that BNB will consolidate in the short term. And for the price, it may linger around $215 and $225.