Binance Coin trends lower but a bounce in prices seem close by
Journalist
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Binance Coin traded within a short-term range.
- The demand in the spot markets was an encouraging sign for BNB bulls.
Binance Coin [BNB] prices witnessed a rejection from the $220 zone on 18 September. This saw the bears seize control of the week’s price action. In other news, the dispute between the SEC and Binance was ongoing.
Read Binance Coin’s [BNB] Price Prediction 2023-24
Binance filed a motion to dismiss the SEC’s lawsuit, claiming they lacked the jurisdiction to initiate legal action. BNB did not respond positively to these developments and the bulls were unable to defend the $213 support zone.
Binance Coin could dip further toward a bullish order block
Source: BNB/USDT on TradingView
The 4-hour chart showed that the market structure of BNB was bearish. It has traded within a range from $204 to $221, with the mid-range level at $212.7. This level has been retested as resistance in recent days.
The range lows also coincided with a bullish order block, which forced a market structure shift away from the bears ten days ago. Hence, the $204 zone was expected to offer solid support, and demand would likely force a BNB rally upon a retest.
The RSI did not support these conclusions as it continued to show bearish momentum held sway. Meanwhile, the OBV has trended downward since 19 September and was a sign that buying pressure was weak over the past few days.
The market sentiment remained positive
Source: Coinalyze
Since 22 September the price has dithered about the $210 level. Yet the Open Interest continued to inch higher and the funding rate was positive. This indicated bidders in the market and pointed toward bullish sentiment amongst speculators.
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The spot CVD has been in an uptrend over the past week. The indicator’s findings were contrary to those from the OBV, but it was a sign that buyers were strong in the spot market.
From a technical perspective, the $203-$207 area presented a good risk-to-reward buying opportunity. A BNB price drop below $204 would be the invalidation of this idea.
