Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only
- Binance coin is crashing below the range lows
- Repeated retests of the support area saw buyers exhausted
Binance Coin had a good start to November, but it went to hell for the bulls. The implosion of FTX has brought many rally coins to a halt. Now, BNB has a bearish market structure on the higher time frame charts, and sellers will be looking for an opportunity to put themselves short in the futures market.
Read Binance Coins [BNB] Price forecast 2023-24
Bitcoin has also been weak on the price charts in recent days. Therefore, there was a possibility that another downturn could happen across the crypto market in the coming weeks. Binance Coin is likely to follow the trend of Bitcoin. The bullish demand mentioned in the last article block did not hold.
The bullish command block was broken after repeated retests
The more a support level (or area) is retested, the weaker it becomes. This has proven to be true in recent days for Binance Coin. On September 19, BNB formed a bullish order block in a 12-hour period. This candle was also near the $256 level. Additionally, it met range lows for Binance Coin, a range it has been trading in since late August.
The Relative Strength Index (RSI) dropped below the neutral 50 level as BNB regained all of its gains to drop from $360 to $280. However, while Off balance Volume (OBV) took a hit, it was near the support area that acted as resistance in October. Further declines in OBV would be an additional sign that the sellers were here to stay.
Technical indicators aside, the price action itself has been strongly bearish lately. Despite the short-term pump to $398 earlier this month, the selling pressure that started near the $360 mark has made the structure bearish. Neither $300 nor $260 can stop the bears’ rally.
Over the next week or two, the previously bullish order block is likely to be retested as a bearish break. Therefore, it may provide short selling opportunities targeting $240 and $216 for ambitious short sellers. A move above $270 suggests that the bulls are struggling and could give traders on the lower time frame a bullish bias.
The average age of the coin is in an upward trend to show the accumulation
The average life of the coin fell sharply in early October, but has been on a steady upward trend since then. This means that fewer coins have been moved from their current addresses and may indicate an accumulation phase. However, this scale by itself does not indicate well local peaks and troughs. It was rather something to watch.
Similarly, the number of active 30-day addresses has decreased since May. It bottomed in mid-October and has been slowly creeping higher since then. Again, it may not provide actionable information to traders but it is something for investors to keep an eye on. The measure of resting trading (90 days) has not seen a sharp increase over the past few weeks of increased volatility, suggesting that holders of the past 90 days may not have panicked despite lower prices.