Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BNB could begin another range-bound movement, as bears held tightly to resistance level.
- Speculators maintained a cautious approach while waiting for a clear direction in the short term.
Bulls have been able to bounce back gently from the $205 support after the bearish breakout took Binance Coin [BNB] below the range low of $225 on 17 August. However, this price bounce has stalled just below the new resistance of $225.
Read Binance Coin’s [BNB] Price Prediction 2023-24
With wavering market conditions continuing to exist, buyers cannot afford another range-bound movement, if BNB is to recover the massive Q2 losses. Meanwhile, Bitcoin [BTC] dropped by over $2,000 within 24 hours to extend its oscillating price action.
BNB could be caught up in another price range
Source: BNB/USDT on Trading View
The massive losses experienced by BNB at the start of June found some respite at the $220 – $225 price level. However, while bulls defended the level staunchly, the insufficiency of the buying pressure kept BNB in a compact range between $225 – $254 over a two-month period.
The same pattern looks to repeat itself after bears successfully flipped the $225 level to resistance. Bulls recovered from the nearby support of $205, but bears have refused to give back the resistance level quickly.
Looking into the chart, indicators showed a preference for a more bullish recovery in the short term. The Chaikin Money Flow (CMF) surged to +0.20, hinting at strong capital inflows. The Moving Average Convergence Divergence (MACD) also posted a bullish crossover, while the Relative Strength Index (RSI) moved to the edge of the 50 mark.
For bulls to experience sustained momentum, the $225 level needs to be reclaimed over the coming days. This will give a solid foundation for a bullish push for the $255 – $260 price level. A price rejection at the $225 level could see more sellers look to push BNB below the $200 price level.
Market indecision among speculators
Source: Coinglass
Realistic or not, here’s BNB’s market cap in BTC’s terms
The exchange long/short ratio highlighted the hesitancy by market speculators to commit to new contract positions on BNB. Data from Coinglass showed a marginal difference between longs (50.32%) and shorts (49.68%).
With just $500k separating long and short positions, a cautious approach is advised in the interim to avoid being caught out by swift buying or selling price action.
