Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The USD 278 border and its surroundings had a strong convergence of resistance levels. Traders can wait for a down break in a shorter time frame before going short
Binance Coin has recovered from the sharp plunge it saw in mid-December. The $250 area was expected to offer solid resistance to the price, but the asset was able to flip $256 to support and climb higher.
Read Binance Coins [BNB] Price Forecast 2023-24
This came in the wake of Bitcoin’s short-lived bullish momentum. The king of crypto was able to climb past the $17,000 mark and stood at $17,2,000 at the time of writing. It met resistance at $17.3k and $17.6k. A break beyond these levels could herald another upward movement in the crypto market.
The surge in recent days has led to inefficiencies in the South that could fill the price
Source: BNB/USDT on TradingView
There are many paths for Binance Coin in the future. A move above the bearish order block at $278 is likely to push Binance Coin towards $300 and $315. However, buyers may need to watch out for a fake rally above $280 before a reversal takes place.
The other path was consolidation between $260-$280 for BNB. Like the consolidation at the end of December, this could give bulls time to reload ammunition before launching BNB higher. This was a more unlikely scenario as Bitcoin faced intense resistance at $17.6k.
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A more likely path has been a rejection in the $275-$280 area. The rapid upward move has left fair value gaps on the chart that price could seek out. For traders looking to take short positions, a move below $270 and a subsequent retest could present a selling opportunity.
A move north can force a large number of liquidations, and traders may wait for a northward flush before assessing their options.
Bears can expect a move south to the Point of Control at $246. This was the Point of Control based on the Fixed Range Volume Profile, which also showed that $283.7 was the Value Area High.
The Open Interest pointed to discouraged long positions
Source: Coinalyse
On December 12, Binance Coin started falling from $285. On December 16, it hit the lows at $225. During this time, Open Interest rose, to show strong bearish sentiment. However, as BNB reversed its recovery back to the $280 zone, only the spot CVD was on the rise.
In fact, the Open Interest has actually fallen over the past few days as BNB climbed from $260 to $280. This was indicative of discouraged longs and some bearishness in the market.
This post Binance Coin Is Reaching A Significant Resistance Zone, Can The Bulls Overcome It?
was published first on https://ambcrypto.com/binance-coin-reaches-a-significant-resistance-zone-can-the-bulls-conquer-it/
