Binance Coin Retests $315 as Resistance, Is It a Good Time to Sell

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice

  • Daily Structure Strongly Bearish After Rejecting $360
  • $280 and $260 are levels to watch out for, but could be risky for the bulls.

Binance Coin crashed to $260 on November 9. The bounce to $313 proved to be a bearish retest, and the coming days could see another move down for the exchange.

Read Binance Coin Price Forecast 2022-23

24 hours prior to publication time showed that 50.5% of participants were declining. The futures market also showed seller dominance. Long-term buyers will need to be careful, while traders with a lower time frame can enjoy the volatility.

$260 saw a price rebound but the bears are still in control

Source: BNB / USDT on TradingView

On the daily chart, Binance Coin performed strongly in October. The term “Uptober” could be applied favorably in the latter half of the month as the price surged from the $256 swing to $360 on the 4th of November.

However, things have taken a sharp downward turn in the past week. The news surrounding the FTX exchange moved the market sentiment to a strong bearish mode.

Binance coin has seen a lot of volatility in recent days. On November 8, BNB swing from a high of $398 to $298. Since then, the price has broken below the (yellow) range that was traded during the August-October period.

BNB dropped to $260 on November 9, the day Bitcoin reached $15.8K. Her outlook was not positive in the coming weeks.

The higher time frame market structure was strongly bearish. Additionally, the $300-$315 area was retested as resistance as well. OBV has fallen sharply during the recent sell-off. The RSI also tested neutral 50 as resistance, as the $300 BNB bears turned into resistance.

In general, the expectations were bearish on the higher time frames. However, some volatility was very likely on the lower time frames as hope and fear seemed to take over the market alternatively almost every hour.

The $280, $260 and $240 levels are likely to be tested again. To the south, the $218-$218 region could also see some demand coming. Thus, buying at any of these levels can involve a lot of risks.

Funding rates are negative, while open interest rates are dropping sharply

Binance Coin Retests $315 as Resistance, Bears Gaining Strength Again

Source: Coinglass

Funding has been very negative in recent days, with numbers coming in at 0.1%. This showed that participants in the futures market were strongly bearish.

The flip side of this observation was that a sudden rise in prices could cause mass liquidations and push the liquidation streak higher.

Binance Coin Retests $315 as Resistance, Bears Gaining Strength Again

Source: Coinglass

The open interest chart also showed a decrease in OI over the past week after the local top was formed at $360. The bulls who led the previous rally may have been forced out of the market. A rise in OI with lower price in the coming days will show downward force.

Given the precarious conditions for the market bulls, it may be worthwhile for the bulls to wait patiently for the storm to break. It was not clear how long that might take. With Bitcoin showing weakness below $18K, Binance Coin could quickly drop below important support levels once again.

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