Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Binance Coin has a strong bearish outlook from a price perspective
- The lack of capital inflow and demand meant a breakdown from the range was likely
Binance Coin [BNB] has retreated to the lows of a range it traded within over the past month. With Bitcoin [BTC] also below the $27k mark, chances of a bullish reversal looked bleak for BNB.
Read Binance Coin’s [BNB] Price Prediction 2023-24
In a recent analysis, AMBCrypto noted on 10 October that the $205 support was likely to break. While the exchange token dipped to $202.8, a break downward did not yet materialize. Here’s what traders can anticipate going forward.
The capital flow direction suggested bulls were vulnerable
Source: BNB/USDT on TradingView
The market structure of Binance Coin was bearish as it dropped to the H4 bullish order block at $205. The range (orange) low was formed at 203.9. It saw a bounce to the mid-range mark at $212.7 on 10 October but was reversed almost immediately.
An H4 session close below $204 would mean traders can look to short the token. As things stand, buyers did not show much strength. The Relative Strength Index (RSI) was at 42 and the On-Balance Volume (OBV) has been in a steady downtrend throughout October.
Additionally, the Chaikin Money Flow (CMF) was below -0.05 and signaled significant capital flow out of the market. The price action and indicators showcased a good chance that BNB would fall below $204.
The OI showed speculators weren’t afraid of going short
Source: Coinalyze
On 9 October and 12 October, the Open Interest (OI) saw a spurt of growth when the prices dipped, as reflected on the one-hour chart above. This captured the intense bearish sentiment in the market and a large number of bears willing to short the token during those sessions.
How much are 1, 10, or 100 BNB worth today?
While the spot Cumulative Volume Delta (CVD) saw an uptick on 10 October, the bulls were unable to sustain the pressure. In the past two days, the CVD saw a small decline. This reinforced the idea that BNB lacked genuine demand in the market and could face further losses.
