Binance coin buyers can look for a 12-hour retest of this key to buy BNB

Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only

  • The market structure broke upwards at the end of November
  • Since reaching $313, BNB has slowly bled and could see more losses.

Bitcoin has been trading in a range of $17.7K to $15.6K since November 9th. Particularly in the last two weeks of trading, volatility has decreased as the price of bitcoin fell from $16.7k to $17.3k. Meanwhile, Binance Coin posted a bullish breakout in the market structure. However, $313 provided stiff resistance for the BNB bulls.

Read Binance Coins [BNB] Price forecast 2023-24

Open interest behind BNB has declined over the past 10 days. This means that Binance Coin could suffer more losses. Buyers may look for an opportunity to enter long positions on this dip.

Binance Coin rejected $313 and was slowly falling towards $284

Source: BNB/USDT on TradingView

On November 18, the price formed a bearish order block. At that time, the market structure was bearish. A few days after that, a strong rally above the $276 level appeared and reversed that downtrend and the bulls were on the rise again. A breach of the market structure was seen to the upside and was followed by a rally to $313. The bearish order block shown in cyan on the chart turned into a bullish breakout.

Because this increase was rapid, the inefficiency remained in the charts. This fair value difference was between $275 and $290. FVG meets the $276 significance level, in addition to the bullish breakout.

Therefore, a return visit to this region may be of interest to buyers. On lower timeframes, a swing failure pattern near the $260-$270 mark can be used to alert buyers that an opportunity may arise. To the north, a move to $300-$315 can be used to take profits.

The RSI has been near neutral 50 since early December. It showed the lack of strong momentum behind BNB. Meanwhile, OBV and CMF have also been flat in recent days. Neither sellers nor buyers dominated last week’s trading.

The 60-day MVRV is down again, and the average age of the coins is showing short-term accumulation

Binance coin fails to break $313 but bulls may look to re-enter at…

Source: feeling

Sentiment data showed that the 60-day MVRV ratio has worked well in recent months to identify local peaks. This happened around November 3rd and 26th as well. At the time of this writing, MVRV is close to zero.

Since the previous MVRV peak, the average age of coins (90 days) has increased. This showed that the BNB tokens remained in their addresses and indicated a short-term accumulation in the network.

Binance coin fails to break $313 but bulls may look to re-enter at…

Source: Coinglass

On the open interest side, the bias is not yet bullish. The rise from $260 to $313 saw a sharp rise in OI. But after the move, both price and OI slowly fell. This may indicate that buying positions are discouraged.

In conclusion, while a move to $270-$280 could offer buying opportunities, the bulls should wait for the entry catalyst before buying.

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