Binance Coin [BNB] recently showed a bearish divergence, resulting in a 2% drop in the price of the token since then. The resistance at the psychological $600 level has remained strong, leading to a downward trend.
On higher timeframe charts, upcoming battles between bulls and bears are foreseen in the following weeks. For now, the market is expected to follow the current range.
The Formation of a Two-Month Range for Binance Coin
Recent lows and highs, marked by the orange and green levels at $454.8 and $605.6 respectively on the weekly chart, have defined an essential range over the past eight weeks. This structure has signified significant levels for the market.
While the weekly market structure appeared bullish, the drop below $450 in August indicated a notable seller dominance. The daily chart highlighted weakening bullish momentum as the CMF fell below +0.05.
Although the OBV has shown slight improvement over the last month, with the potential for an upward movement, key resistance stands at $600 and support at $450. Of the two, $450 seems more fragile.
Signs of Short Squeeze in BNB’s Liquidation Levels
The weekly resistance zone, notably at $615, has established a substantial liquidity pool for Binance Coin, drawing price action towards higher levels. However, the token may face rejection upon surpassing $600.
Analysis of lower timeframe liquidation levels suggests a growing imbalance, with short liquidations surpassing long liquidations, signaling a potential short squeeze scenario.
Expectations of a price rebound towards $507 and $512 are on the horizon. A close examination of the 1-hour chart reveals a narrow range between $498 and $513, with $506 emerging as a recent resistance point.
Disclaimer: The views presented are solely the author’s opinion and not financial, investment, or trading advice.