Binance Coin (BNB) has reaffirmed the lows established on Friday, 6 February, at $570. This was a worrying sign for bulls and investors for a long time, as it was a sign of bearish dominance.
The sellers are threatening to drive prices below the low of $570 and force a reversal signal on its next move. Coinalyze data supported the bearish regime.
Despite the positive trend, the CVD position has been on a downward trend over the past week. In addition, when The price of BNB price dropped to $570, Open Interest increased from $530 million to $560 million.
This means that short sellers were entering the market during the downtrend. OI has been on a downward trend since then, as the price rose slightly to resistance at $590.
BNB’s problems are not temporary
Relative weakness vs Bitcoin (BTC) it was worrying. The crypto leader’s February low was $66k, and the current market price is $66.6k. In the meantime, BNB tested the deficit in February.
Speculative sentiment and a lack of demand could make BNB very low.
The RSI during the 1-day period was at 34, indicating a strong bearish trend. OBV peaked in March but then fell again.
$577 and $604 were the key levels to watch over the next few days. A move back above $604 would be a short-term victory for the bulls, although they can’t predict what’s going on.
Meanwhile, losing the support of $577 will mean that the next target will be $530.
The three-month heat map shows that further declines are possible. There was a financial group formed around $565 that could bring down BNB.
To the north, the areas of $ 650 and $ 700 have been closed for a long time and can be monitored if prices rise.
Based on the available evidence, traders should expect BNB to move towards the next $530. A jump to $600, or to $650-$700, would be a bargain.
Brief Summary
- BNB fell quickly on Thursday, 2 April, testing the support level of $570 which indicated the downside of the February crash.
- The rise in Open Interest on Thursday’s decline in prices indicated a relatively bearish sentiment.
