- BNB could surge higher in search of liquidity.
- Bullish market participants should be cautious of a quick reversal in that scenario.
Binance Coin [BNB] saw an uptick in buying volume in recent weeks but still lacked the strength to force a breakout. The trend had been firmly bullish in December but ground to a halt in early January.
The $315-$330 resistance zone refused to yield. At press time, BNB was trading within a range that extended from $289 to $325. Should traders be ready to go long, or treat the next move to $330 with caution?
The one-month-old range gives traders many hints
Source: BNB/USDT on TradingView
The mid-point of the range sat at $307. This level has been respected as both support and resistance on the one-day chart in the past month. This lent further credibility to the range.
The red box that extended from $300 to $315 was a bearish order block on the weekly timeframe. While D1 price action witnessed a close above $315, the weekly chart has not yet seen that. Hence the $315 region, alongside the $330 level, continued to act as strong resistance.
On the other hand, the RSI showed some bullish momentum. The OBV has also made a series of higher lows over the past month. Both factors pointed toward a potential breakout for BNB.
The liquidation heatmap shows the range is likely to continue
Source: Hyblock
AMBCrypto inferred from the liquidation heatmap above that the range formation might not break anytime soon. This was because of the large number of liquidation levels around the price. To the north, the $325 and $340 regions were hugely important.
Read Binance Coin’s [BNB] Price Prediction 2024-25
The region from $320 to $350 was bright with estimated liquidation levels. This meant that buyers looking to go long upon a breakout past $330 could see prices reverse against them after collecting the liquidity to the north.
Hence, looking to short BNB near the $330-$340 area appeared more feasible, targeting the $315 and $300 levels.
Credit: Source link
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