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- BNB’s Long/Short ratio stood at 0.871 at the time of writing, indicating bearish market sentiment.
- 53.44% of traders had short positions, while 46.56% had long positions.
Binance coin [BNB]The world’s fourth largest cryptocurrency by market cap, appears bearish as it has formed a bearish price action pattern on a daily time frame.
In less than three weeks, BNB has risen more than 25% but has now reached a level where it faces extreme selling pressure along with major cryptocurrencies.
BNB technical analysis and key levels
According to AMBCrypto’s technical analysis, BNB has formed a bearish triple top price action pattern on its daily time frame.
In addition, the asset has also formed an evening star candlestick pattern at the resistance level around $605, further supporting the bearish outlook.
Source: TradingView
Based on the historical price momentum, there is a high possibility that BNB could fall by 20% in the coming days to reach the $480 level.
This negative outlook for BNB will persist as long as the price remains below the $625 level, otherwise it could fail.
However, it is still trading above the 200 Exponential Moving Average (EMA) on a daily time frame, indicating an uptrend.
Traders and investors often use the 200 EMA to determine whether an asset is in an up or down trend.
High liquidation levels
Currently, the key liquidation levels are around $593 at the low end and $607.5 at the high end as traders are over-leveraged at these levels, according to an on-chain analytics firm. Mint glass.
Source: Coinglass
If market sentiment turns bearish and BNB falls to the $593 level, long positions worth nearly $280,000 will be liquidated.
Conversely, if sentiment changes and the price rises to the $607.5 level, short positions worth approximately $2.30 million will be liquidated.
This data shows that bulls are currently exhausted, while bears are currently very active.
BNB’s bearish on-chain metrics
Meanwhile, other on-chain metrics further support this bearish outlook. Coinglass’s BNB Long/Short ratio stood at 0.871 at the time of writing, indicating bearish market sentiment among traders.
Source: Coinglass
Moreover, the Futures Open Interest has fallen 3.5% in the last 24 hours, showing that traders have been hesitant to build new positions.
At the time of writing, 53.44% of top traders have short positions, while 46.56% have long positions.
Read Binance Coin’s [BNB] Price forecast 2024–2025
Current price momentum
At the time of writing, BNB was trading around $596, having fallen more than 1.4% in the past 24 hours.
During the same period, trading volume fell 13%, indicating lower trader participation amid the bearish outlook.
