Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Binance Coin has a strong bearish outlook from a price perspective
- Due to the lack of capital inflow and demand, a breakdown of the range was likely
Binance coin [BNB] has retreated to the low end of the range it has been trading in for the past month. With Bitcoin [BTC] Even below the $27,000 mark, the chances of a bullish reversal looked bleak for BNB.
Read Binance Coin’s [BNB] Price forecast 2023-24
In a recent analysis, AMBCrypto noted on October 10 that the $205 support was likely to break. While the exchange token fell to $202.8, there was no downward breakthrough yet. Here’s what traders can expect in the future.
The direction of capital flow suggested that bulls were vulnerable
Source: BNB/USDT on TradingView
Binance Coin’s market structure was bearish when it fell to the bullish order block in the 4th century at $205. The range (orange) low was formed at 203.9. It rose to the mid-range of $212.7 on October 10, but was reversed almost immediately.
An H4 session closing below $204 would mean traders can short the token. As things stand, the buyers didn’t show much strength. The Relative Strength Index (RSI) stood at 42 and On-Balance Volume (OBV) was in a steady downward trend throughout October.
Furthermore, the Chaikin Money Flow (CMF) was below -0.05, signaling significant capital outflow from the market. The price action and indicators showed a good chance of BNB falling below $204.
The OI showed that speculators were not afraid to go short
Source: Coinalyse
On October 9 and October 12, Open Interest (OI) experienced a growth spurt as prices fell, as shown in the one-hour chart above. This reflected the intense bearish sentiment in the market and a large number of bears willing to short the token during those sessions.
How much is 1, 10 or 100 BNB worth today?
While the spot Cumulative Volume Delta (CVD) rose on October 10, the bulls could not sustain the pressure. Over the past two days, the CVD saw a small decline. This reinforced the idea that BNB lacked real market demand and could face further losses.
