Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Binance Coin’s lower market structure was strongly bullish. The coin saw a small pullback of $280, and the price reaction in the next few hours could decide BNB’s next move.
Bitcoin [BTC] climbed higher for the third day in a row on January 10, reaching $17.5k. This was close to the $17.6k resistance, 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 in a significant resistance zone. According to a Jan. 11 article, traders may want to wait for a move below $270 before taking short positions. The market remained indecisive in a key area of resistance and patience could be rewarded.
The bearish order block on the four-hour time frame has held up so far
The lower time frame market structure was strongly bullish, but the drop below $276.8 saw its character changed. The bias remained bullish, but the RSI stood at 50.02 indicating that momentum may be tipping to the downside. In addition, the CMF stood at -0.07, indicating significant capital outflow from the market over the past few hours.
Still, the A/D indicator has made higher lows over the past week. This showed real demand behind the rally from $240. In the north, the $280, $300 and $315 levels are critical resistance levels.
Are your positions flashing green? Check out the BNB Profit Calculator
A move above $280 could be a hunt for liquidity. Traders can thus wait for a session close above USD 284.4 and a retest of the USD 276-USD 280 area to assess a buying opportunity. On the other hand, a session close to $270 can lead to a rapid drop. In that scenario, a retest of the $270-$275 area could sell.
Despite the advancing CVD, Open Interest has decreased
Like the A/D indicator, the spot CVD for Binance Coin has also increased in recent days. It also showed steady buying pressure behind the recent rally. But the Open Interest statistic has been falling since the last week of December. Although it has been interspersed with upward moves, the trend is downward.
Especially in recent days, despite strong gains, BNB’s OI has fallen. In addition to showing that a local top could be just around the corner, it was also evidence of bearish sentiment in the markets. Coinalyze data showing that short positions worth $1.8 million on Binance Coin had been liquidated on January 9.
This post Binance Coin Bulls Encountered Resistance At $282, Rejection Follows?
was published first on https://ambcrypto.com/binance-coin-bulls-encountered-resistance-at-282-will-a-rejection-follow/