Binance Coin reaches a significant resistance zone, can the bulls conquer it?

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.

  • The $278 mark and its neighborhood had a sturdy confluence of resistance ranges
  • Traders can await a decrease timeframe break in the construction downward earlier than shorting

Binance Coin has recovered from the sharp plunge it noticed in mid-December. The $250 space was anticipated to pose stiff resistance to the worth, however the asset was capable of flip $256 to assist and climb increased.

Read Binance Coin’s [BNB] Price Prediction 2023-24

This got here in the wake of some short-term bullish momentum from Bitcoin. The king of crypto was capable of climb previous the $17k mark, and at press time stood at $17.2k. It confronted resistance at $17.3k and $17.6k. A breakout previous these ranges may usher in one other transfer upward throughout the crypto market.

The sturdy surge in latest days has left inefficiencies to the south that the worth may fill

Source: BNB/USDT on TradingView

There are many paths for Binance Coin going ahead. A transfer above the bearish order block at $278 will probably see Binance Coin rise to $300 and $315. However, consumers would possibly have to beware a faux rally previous $280 earlier than a reversal.

The different path was consolidation between $260-$280 for BNB. Like the consolidation in late December, this might give bulls time to reload ammunition earlier than launching BNB increased. This was a extra unlikely state of affairs, as Bitcoin confronted intense resistance at $17.6k.

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A extra probably path was a rejection in the $275-$280 space. The swift transfer upward has left honest worth gaps on the chart that the worth may search out. For merchants to enter brief positions, a transfer beneath $270 and a subsequent retest can provide a promoting alternative.

A transfer northward can power a great amount of liquidations, and merchants can await a northward flush earlier than assessing their choices.

Bears can anticipate a transfer south to the Point of Control at $246. This was the Point of Control primarily based on the Fixed Range Volume Profile, which additionally confirmed the $283.7 mark to be the Value Area High.

The Open Interest pointed towards discouraged lengthy positions

Binance Coin reaches another resistance zone but bulls have the upper hand

Source: Coinalyze

On 12 December, Binance Coin started to drop from $285. On 16 December it reached the lows at $225. During this time the Open Interest was rising, to indicate sturdy bearish sentiment. However, when BNB solid its restoration again to the $280 zone, solely the spot CVD was on the rise.

In reality, over the previous couple of days, when BNB climbed from 260 to $280, the Open Interest has truly declined. This was indicative of discouraged longs, and pointed towards some bearishness in the market.

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