- A bearish order block pushed the price below the USD 318 support level.
- BNB shorts maintained a 53.9% advantage in the longs/shorts ratio.
The general slump of the crypto market over the last 24 hours saw Binance Coin [BNB] decrease by 2.4%. This pushed the price of the fourth-largest cryptocurrency by market cap below a key support level.
Read Binance Coins [BNB] Price forecast 2023-2024
With BTC going through a correction and diving back below the $28,000 price area, it could lead to more selling pressure for BNB.
Market sentiment showed investor uncertainty
Source: BNB/USDT on trade view
The price of BNB has been choppy over the past month. The price fluctuated between the $318 support level and the $350 resistance level.
BNB formed a bearish order block (cyan) on the four-hour time frame in the $338-$345 region on April 26. This forced a dip to the $318 support level.
A retest of the bearish order block on May 1 caused another dip to that support level. This triggered a bullish pullback with the price falling below the USD 318 support level to trade at USD 315, as of writing.
With the bearish order block just below the $350 resistance level, it highlighted the significance of this zone on the price charts. The price dip was also reflected in the chart indicators. The RSI hovered just above the oversold zone, while the OBV also recorded a slight dip.
Traders looking to short BNB can look for a four-hour candle below $318. The medium-term target should be the next $303 support level, while the $285 support level could serve as a long-term target
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Shorts reigned supreme in the futures market
Source: Coinglass
According to data from Mint glass, the long/short ratio showed sell positions outperformed the four-hour time frame by 53.9%. This suggested that BNB’s medium-term outlook remained bearish.
BNB Longs also suffered huge losses in the past three days. A total of $1.16 million in longs were liquidated, representing 95% of total liquidations.
Source: Coinglass
