Binance Coin trades beneath the crucial $250 mark, where to next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure and momentum favored Binance Coin bulls.
- The Open Interest and spot CVD showed a different picture compared to the OBV’s findings.
Binance Coin [BNB] has a bullish structure in the market. Its lower timeframe price charts showed upward momentum and the volume indicators showed demand was present. Yet, BNB faces intense resistance to the north.
Read Binance Coin’s [BNB] Price Prediction 2023-24
The $250 and $252 are psychological and technical levels of significance. Can bulls wait for a breakout past these levels, or will it be another liquidity grab? The direction of Bitcoin [BTC] on 3 July could shed light on the short-term sentiment.
The bullish market structure of Binance Coin meant buyers hope for a breakoutThe recent lower high on the H4 chart at $240.9 was breached on 30 June. Over the weekend, Binance Coin prices slowly climbed higher. At the time of writing the exchange token traded at $246.9. Yet, a clear uptrend was not established.
The area highlighted by the red box represented a bearish order block on the 4-hour chart that extended up to $248.6. A move above this mark would suggest bullish intent, although it can be too early to trade the breakout. The momentum was bullish with a value of 59.3 on the RSI. The OBV was also in a slow but steady uptrend over the past three days.
On 22 June, the market structure was bullish as prices climbed past $255, but faced a reversal at $257. Similarly, a move higher in the coming hours could prove to be a liquidity hunt. Above $255, the $265 level is also an important resistance. Hence, buyers should exercise caution and size their positions knowing that the trade was extra risky given the price action in recent days.
The sharp tumble on the spot CVD raised concerns that sellers were dominant
How much are 1, 10, or 100 BNB worth today?
While the prices trudged higher, the spot CVD has taken a nose dive over the past three days. This was in stark contrast to the trend on the OBV. Therefore, despite the rising OBV, it was possible that the sellers were getting ready to trap late longs before a downward move.
But this finding adds to the risky conditions we have touched upon earlier. The trend was not firmly bullish and sellers still have strength in the market. The Open Interest has not climbed alongside the prices, showing speculators lacked conviction in the upward move.