Key Takeaways
Why did BNB face bearish pressure over the last few hours?
Despite BNB’s price bounce to $1,182 on Monday, Bitcoin’s rejection at $116k shifted market-wide sentiment bearishly.
What are the next key levels for BNB traders?
The $1,026 support and the $1,182 local high would be the key support and resistance levels to watch out for.
At the time of writing, the crypto market was in the middle of another price dip as Bitcoin [BTC] faced rejection at the $116k resistance. Spurred by short-term BTC holders taking profit at a key short-term resistance level, the altcoin market dropped by 2.5% in the last ten hours.
Binance Coin [BNB] was not immune to this price drop and lost 3.84% of its value on the charts. Despite the selling pressure though, the price remained above $1,000. How much longer will that be the case?
BNB safe above support… For now!
Source: BNB/USDT on TradingView
The 1-day timeframe price chart revealed that while BNB had a bullish swing structure, it also had a bearish short-term bias over the past ten days. This was due to the bulls’ inability to defend the swing low at $1,100 on 17 October.
As it stands, the Fibonacci retracement levels are being respected, with the 78.6% level at $1,026 emerging as an important support level. A price drop below this level would be an early warning sign of weakness from the bulls.
The BNB long/short ratio chart used the taker buy/sell ratio to determine the number of takers on either side. More aggressive taker bids would mean bullish conditions, but the ratio was 0.87 on Tuesday.
This meant that the taker sell volume was slightly higher. This might help explain the price’s struggles to overcome the $1,140 resistance zone. Only in recent hours did the taker volumes find equilibrium, which might shift depending on BTC’s next move.
Overall, BNB seemed to be in a tough spot. The buyers appeared to be too weak to drive a rally, but still had enough fight in them to defend the psychological $1k support level. A move below $922 would be confirmation of a long-term bearish trend. On the contrary, a rally past $1,150-$1,190 would be the first step towards establishing an uptrend.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
